Shale gas exploration company Armor Energy has been placed in receivership.
The Brisbane-based company – which works to discover and produce gas, LPG and oil in Queensland, Victoria, South Australia and the Northern Territory – was an industry giant ten years ago years.
However, it has experienced financing difficulties in recent years and the trustees are now trying to sell its assets.
Armor Energy reported losses of $11 million in the last fiscal year.
Richard Tucker and Robert Hutson of KordaMentha Restructuring, who have been named receivers, say they expect a “high level of interest” in Armor’s assets.
“The appointment by the secured creditors follows the Company’s unsuccessful attempts to repay outstanding senior secured notes,” a KordaMentha statement said.
“Armor Energy delivered consistent quarterly production results and revenue of $15.0 million in FY23. However, there is significant upside potential for both production volumes and turnover,” the press release said.
“With the Kincora gas project in production and permits with significant reserves in Queensland, South Australia and Victoria, we expect there to be a high level of interest in Armor’s assets Energy,” Mr. Tucker said.
“When we undertake the sales process, we ask all suppliers and stakeholders to work with our team to ensure value is preserved. This is in the interest of all creditors.