Armour Energy has announced that the 2018 Kincora Gas Project drilling campaign continues with the spudding of the Myall Creek 5A well in Armour’s 100% owned PL511 in Queensland.
Easternwell drill rig 101 has now completed drilling the 12‐1/4” surface section of the hole to 486 metres. The Myall Creek 5A well is planned to be drilled to a total vertical depth of 2,355 metres.
The Myall Creek 5A well is expected to be part funded from a grant under the Federal Government’s Gas Acceleration Program (GAP). As previously announced, Armour was successful in obtaining a cost contribution grant of up to $6 million to assist with the drilling of 4 wells on the Roma Shelf in order to support the provision of domestic gas supply for East Australian gas markets.
Armour has designed the Myall Creek 5A wellbore to enable a multi‐stage hydraulic stimulation of the prognosed 300 metre gross hydrocarbon charged section below the regional Triassic Snake Creek Shale seal. The design will enable commingling all three historically stand‐alone stimulated hydrocarbon reservoirs in one single wellbore to maximize production rates and to recover an estimated 4.4 PJ of gas and yield approximately 44,000 barrels condensate and 9,000 tonnes LPG.
Commenting on the spudding of the Myall Creek 5A well, Armour CEO Roger Cressey said: “Armour recently drilled and connected Myall Creek 4A well and as a result we recently announced a 40% increase of independently verified 2P Petroleum Reserves from 44.4 PJ to 63.1 PJ of gas in our Myall Creek Field.
“The successful drilling and completion of this new well will add further reserves and new production for this field. The Myall Creek 5A well is close to our existing infrastructure and can be delivered to market quickly after the well has been completed and connected.”
This well is the second of Armour’s drilling program as part of its Phase 3 growth strategy which includes drilling of new wells and investigations into the workover and stimulation of existing wells. This, together with any necessary further work on the Kincora Gas Plant, will target gas production to be increased to 20 TJ/day over the next 12 months.
Source: Company Press Release