Shale gas exploration company Armour Energy has collapsed into receivership.
However, it has struggled with funding in recent years and receivers are now trying to sell off its assets.
Armour Energy posted losses of $11million in the last financial year.
Shale gas exploration company Armour Energy has collapsed into receivership
Richard Tucker and Robert Hutson of KordaMentha Restructuring, who have been appointed as receivers, say they expect a ‘high level of interest’ in the firm’s assets.
‘The appointment by secured creditors follows unsuccessful attempts by the company to repay the outstanding senior secured notes,’ a statement from KordaMentha said.
‘Armour Energy has been achieving consistent quarterly production results and sales revenue of $15.0 million in FY23. However, there is considerable upside for both production volumes and sales revenue,’ the statement said.
‘With the Kincora Gas Project in production and permits with significant reserves across Queensland, South Australia and Victoria, we expect there to be a high level of interest for the Armour Energy assets,’ Mr Tucker said.
‘While undertaking the sale process, we ask all suppliers and stakeholders to work with our team to ensure value is preserved. This is for the benefit of all creditors.’