Armour to Commence Kincora Project Well Program with Myall Creek 4A

Brisbane based oil and gas explorer and producer Armour Energy Limited (“Armour”, or “the Company”, ASX: AJQ) is pleased to advise that the Company has entered into a contract for the drilling of Myall Creek 4A (permitted as well Myall Creek 2655 YNE) at the Kincora Gas Project on the Roma Shelf, south of Roma, Queensland (Figure 1).  Drilling is expected to commence before the end of May 2018.The 100% Armour-owned well is located within the Myall Creek Gas Field, which has produced 19.3 petajoules of gas historically and hosts a further 48.5 petajoules of 2P gas reserves in the Permian gas reservoirs of the field, as part of the overall 2P reserves for the Kincora Project of 56.8 PJs¹.

Historic total production from historic wells, drilled by Origin Energy, AGL and Mosaic, ranges from 0.84 PJs to 8.96 PJs from the Permian aged Upper Tinowon Sandstone.  The historic success rate for Roma Shelf wild cat wells drilled at locations of seismic closure is 37%. The prognosed Armour success case for Myall Creek 4A is significantly higher owing to its status as a development well rather than a wildcat, its location within the field (surrounded by past producing wells), and the 300 metre gross hydrocarbon charged section that has been intersected in surrounding wells and verified through recently reprocessed 3D seismic and reservoir studies.

Previous production wells and completion strategies in the Myall Creek Gas Field have focussed on single stage production completions of either the Permian aged Upper and Lower Tinowon or the associated Rewan Formation. In all cases, where well design allowed, these various reservoirs have required a stimulation to enhance connectivity with the reservoir, to increase gas flow rates and to maximise hydrocarbon recovery.