Armour Inks MOU for Future Gas Supply to MMG's Queensland Operations

Commenting on the signing of the MOU with MMG, Armour’s CEO Robbert de Weijer said “Armour and MMG have recognized the potential for mutual and significant value creation through the supply of gas from Armour’s exploration acreage in North West Queensland to MMG’s potential future operations in the region. This MOU is an important first step towards early monetization and proof of concept for Armour’s potentially enourmous shale gas resources in the region.”

In June 2013, Armour announced a Heads of Agreement with APA Group to work together to facilitate the transportation of up to 330 Petajoules of gas per annum from Armour’s Northern Australian gas projects to various markets in Mt Isa, Sydney and Gladstone. Stage 1 of this project involves a 198.8 mile (320 kilometer) pipeline connection to Mt Isa.

Mr de Weijer added “The supply of locally produced and competitively priced energy to the Mount Isa region in Queensland which currently uses 35‐40PJ per annum of gas has the potential to change the landscape for mining operators there who currently use either expensive diesel fuel or gas transported from large distances away and which is becoming more expensive and increasingly scarce.”

MMG General Manager Queensland Operations Mark Adams said “We are very pleased to have commenced this working relationship with Armour Energy. Secure, cost‐effective energy supply is critical to the further development of the region, and for MMG’s ongoing investigations into future uses for its extensive north‐west Queensland infrastructure.”