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BRIEF-Armour Energy Proposes Demerger Of Northern Basin Oil & Gas Business

Published 03/03/2021, 12:24 pm
Updated 03/03/2021, 12:30 pm
© Reuters.

March 3 (Reuters) - Armour Energy Ltd AJQ.AX :

* PROPOSED DEMERGER OF NORTHERN BASIN OIL & GAS BUSINESS

* IPO AND CAPITAL RAISE OF $60-$65 MILLION FOR MCARTHUR OIL & GAS PROPOSED TO FUND ACQUISITION OF NORTHERN BASIN OIL & GAS ASSETS FROM ARMOUR

* PROPOSED TOTAL CONSIDERATION OF $40 MILLION CASH PLUS A MINIMUM OF 33.3% RETAINED INTEREST BY ARMOUR SHAREHOLDERS IN MCARTHUR OIL & GAS

* CONSIDERATION RECEIVED BY CO TO BE USED TO RETIRE ITS OUTSTANDING DEBT

* NEW CO MCARTHUR OIL & GAS LTD PROPOSED TO BE CREATED TO HOLD NORTHERN BASIN OIL & GAS BUSINESS AND DEMERGED FROM CO

* TO DISTRIBUTE SHARES IN MCARTHUR OIL & GAS OF A MINIMUM OF 33.3% BY A RETURN OF CAPITAL TO EXISTING SHAREHOLDERS OF CO

* NEWLY FORMED CO MCARTHUR OIL & GAS LTD TO BE SEPARATELY LISTED ON ASX

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