Restart work at Emu Apple, which forms part of the Company’s recently acquired Kincora assets in the Roma shelf in Queensland, was completed safely and well below budget.
Emu Apple-1 well is currently producing at a rate of approximately 50 bpd.
The Emu Apple Field covers an area of 1.3 km2. As first reported by the Company in its 7 October 2015 Target’s Statement, based on an independent report received by Risc Operations Pty Ltd on 30 September 2015, the Emu Apple-1 well is estimated to contain approximately 100,000 bbl of remaining recoverable oil in a 4 way dip closed structure in the Jurassic aged Boxvale Sandstone at a depth of 1400 metres.
Armour’s Kincora Project covers 6 historic oil fields that have historically produced 2.9 mmbbls oil. Armour has identified 5 wells with untested logged oil pay behind casing which was never tested, and further untested appraisal areas in the existing fields.
Armour aims to re-enter and test the best of these opportunities as part of its campaign to bring the Kincora project up to full development status.
Armour recently announced an increase in resources for the Kincora Project which offer the Company the potential to transform into a significant gas and oil producer.
Robbert de Weijer, Armour’s CEO, commented: “starting oil production from the Emu Apple field marks a key milestone for Armour. We are now generating our first cash flow and, due to our low cost structure, we should generate a very healthy margin from each barrel that we produce. Our operations team did a great job as the re-start of oil production was achieved without a glitch. This bodes well for the re-start of gas production which we are aiming to achieve by the end of this year.’
Nick Mather, Executive Chairman, said: “the Roma Shelf has historically spawned numerous oil and gas companies such has Hartogen, Crusader, Beach, AOG and Bridge and it goes on giving. Armour will be the next. Armour's advantage is a new generation of 3D seismic techniques to find oil and gas here and very efficient field development and oil and gas recovery techniques. Clearly there are many more oil and gas pools here. Historically 37% of wildcats on the Roma Shelf have been discoveries. That’s an enviable record.”
