Formal award of Petroleum Acreage near the Kincora Production Facilities, as part of the Roma Shelf Project

Source Press Release
Company Armour Energy Limited 
Tags Licensing Rounds, Deals, Exploration, Upstream Activities
Date December 21, 2018

Armour Energy Limited (Armour, ASX:AJQ) is pleased to announce that the Queensland Department of Natural Resources, Mines and Energy (DNRME) has formally awarded three exploration blocks which now form part of Armour’s Roma Shelf Project, in the Surat Basin. The Company has been notified by DNRME that the applications ATP2034, ATP2035 and ATP2041 as shown on the attached map, have now been formally awarded to Armour Energy. These areas are considered to be highly prospective and are in proximity to the existing gas infrastructure associated with the Kincora Gas Plant.

Following notification by DNRME, Armour Energy’s CEO, Mr Roger Cressey stated: “The Company is pleased that these tenures have been awarded to Armour Energy by the Minister for Natural Resources, Mines and Energy, and once again we thank him for his ongoing support of Armour Energy as a company that is focused on the ongoing development and supply of natural gas to the Eastern Australian domestic gas market.”

“Armour considers this tenure, in particular ATP2041, to be a significant award. Armour originally lodged the Expression of Interest to DNRME for this tenure, and the adjoining tenure, to be publicly tendered. While Armour was not successful in the award of both blocks, the fact that the adjoining block to ATP2041 was awarded to a Santos Shell Joint Venture validates Armor’s belief that Roma Shelf still holds great potential, which may support the development of a significant new hydrocarbon project in the region.

Armour notes that Santos’ CEO Mr Kevin Gallagher, upon notification of its JV with Shell being appointed the preferred tenderer of the Authority to Prospect adjoining Armour’s ATP2041, was quoted in the Australian Financial Review1 stating “If the play works then we [Santos Shell JV] believe there is multi-TCF potential across it”. Armour also believes that this region has a multi-TCF potential to support a much larger project, and the Company will be working diligently to explore and prove-up the resource over the next four years” said Mr Cressey.

Kincora Maintenance and Refurbishment Project Update

Armour has just completed its second major plant shutdown for maintenance and refurbishment activities on the Kincora Gas Plant, and has brought the plant back on-line this week into full operations with up to 10TJ/d of gas production through the plant from the existing petroleum wells across Armour’s production assets.

Armour’s plan is to increase production through the plant up to 15TJ/d over the coming weeks to enable supply of gas to the market at times of peak demand. To achieve increased rates, gas production will be from existing wells, including recently drilled wells, plus some gas drawn from the Newstead Storage Facility. This will provide Armour with the opportunity to maximise returns during the summer peak period. Armour’s Board and Management Team are pleased with the way that the recommissioned Kincora Facility has performed this year – testament to the experience of the staff who operate the field and facility.

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Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd