Armour Energy goes into receivership over outstanding debts

An energy company with an annual revenue of $15 million has gone into receivership following an extensive period of losses.

Australian exploration and production company, Armour Energy, has gone up for immediate sale but will remain in operation under the watch of KordaMentha Restructuring until its sold.

KordaMentha’s Richard Tucker and Robert Hutson were appointed on Friday.

“The appointment by secured creditors follows unsuccessful attempts by the company to repay the outstanding senior secured notes,” a media statement from KordaMentha read.

Armour Energy is focused on the discovery, development and production of gas, LPG, gas condensate and oil in Queensland, Northern Territory, Victoria and South Australia.

Mr Tucker and Mr Hutson would be in control of operations while undertaking “an immediate sales process” the receivers 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 read.

“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.”

Armour Energy’s subsidiaries would also go into receivership including Coera Pty Ltd, McArthur Oil and Gas Limited, Holloman Petroleum Pty Ltd, Cordillo Energy Pty Ltd and

McArthur NT Pty Ltd.

Amour Energy posted a loss of $11 million in the most recent financial year and a latest trailing-twelve-month loss of $13 million.

The staggering figures worsened the company’s chances of breaking even.

Industry analysts in May projected the company could breakeven come 2024 and even post a profit of $1.1 million.

For that to have had a chance however, the company would have needed to have an annual growth rate of 100 per cent – a pipe dream that would clearly never eventuate.

brooke.rolfe@news.com.au

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