Armour Energy Limited announced that it has signed a Master Sales Agreement (MSA) with Shell Energy Australia Pty Ltd. (SEAU), a wholly owned subsidiary of the Shell Group, and has entered into an initial gas sales agreement pursuant to the MSA. The MSA provides the framework terms that can be used for transactions to utilise the Newstead Gas Storage facility, 100% owned and operated by Armour, to take advantage of gas demand cycles. The MSA entered into with SEAU provides the framework and general terms and conditions for any bilateral gas trading that is agreed for supply from Armour's conventional fields in the Surat Basin, Queensland.

Armour and SEAU have entered Transaction Notices (TN) under the MSA for a 13-month supply of gas by Amour to Shell from December 2023., The gas prices agreed under the TN are materially higher than that of Armour's current contract arrangements. The price for December 2023 is $12/GJ, with an uplift in price for calendar year 2024 based on forecast 2024 market pricing improvements. Additionally, Armour and SEAU are exploring initial opportunities, on a non-exclusive basis, for SEAU to utilise the 100% Armour owned and operated Newstead Gas Storage facility that has a licenced storage capacity of up to 7.9 petajoules.

Armour, with technical services augmented by SLB, is currently undertaking an extensive field optimisation and enhancement program where the initial focus will be across Armour's substantial Surat Basin portfolio. This includes wells, reservoir and production facilities focussing on data management, network de-bottlenecking, production enhancement, seismic reprocessing and acquisition, reservoir management, well intervention and drilling.