(MENAFN- ProactiveInvestors - Australia) Armour Energy has encountered strong gas shows and flared gas after drilling its Egilabria-2 in Queensland to a depth of 1,097 metres.
Gas logs recorded a peak gas show 1,417 units when the well penetrated the Doomadgee Supersequence in the Isa Superbasin, flowing a 8 metre long flare.
Prior to this, gas log readings were showing less than 1 unit of background gas.
Egilabria-2 is currently at a depth of 1,330 metres with the Main Lawn Shale target zone prognosed at 1,640 to 1,765 metres.
Armour and its independent expert consultants believe the Lawn Hill Formation contains a Prospective Recoverable Resource of 22 trillion cubic feet of shale gas.
This provides potential to define up to 9Tcf of resources and reserves over the next three years, enough to support 6 million tonnes of liquefied natural gas production for more than 20 years.
Once the targeted total depth of 1,850 metres is reached, the Egilabria 2 DW1 lateral well will then be drilled to establish a sub horizontal lateral section targeting 504 metres of intersection within the Lawn Hill Formation.
This will then be completed with casing and swelling packers to establish six isolated stimulation zones.
Halliburton Energy Services has been contracted to carry out a six stage hydraulic stimulation of the Egilabria 2 DW1 well to test the shale gas production potential of the Lawn Hill Formation.
This is designed to attempt to prove commercial gas flows.
Success would be a key milestone in the company's plans to define proven and probable reserves in ATP 1087.p
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