(MENAFN- ProactiveInvestors - Australia) Armour Energy (ASX: AJQ) has doubled its Queensland unconventional exploration acreage to 3.6 million acres (14,568.7 square kilometres) with its successful tender for ATP 1107 in the south Nicholson Basin.
ATP 1107 is immediately south of, and adjacent to its existing ATP 1087 and increases its exposure to the Lawn Hill Formation where strong and consistent gas shows were noted in a well drilled in the 1990s.
The Egilabria 1 well that was drilled by Comalco in what is now ATP 1087 encoountered the shows across a 125 metre section of the Lawn 4 formation.
The Lawn 4 formation is interpreted to contain up to 8% total organic carbon and a gas charged brittle shale suitable for lateral drilling and hydraulic fraccing to stimulate gas production.
Independent consultant MBA Petroleum Consultants had estimated that ATP 1087 could host a recoverable resource of 22.5 trillion cubic feet of gas and 242 million barrels of associated liquids.
They have also been commissioned to assess the resource potential in ATP 1107.
Armour is required to secure a Native Title Agreement and the relevant environmental clearances before it can be granted an exploration permit over ATP 1107.
However, it expects these processes to flow on from the ongoing negotiations and assessments for ATP 1087.
Armour plans to conduct an integrated exploration program across ATP 1087 in order to define commercial gas reserves by the end of 2013. ATP 1107 will provide an extension of this exploration opportunity.
The company, which listed in April, hit the exploration ground running with the drilling of 2 wells with Lakes Oil (ASX:LKO) in the onshore Otway and Gippsland basins.
It has also made a gas find with its first Macarthur Basin well in the Northern Territory.
The Cow Lagoon-1 well flared gas from indeterminate zones in the Reward Dolomite unit in the highly prospective Batten Trough between 342 and 540 metres depth.
Cow Lagoon-1 is being drilled to test the oil and gas prospective middleâ€Proterozoic aged sedimentary rock section to a maximum target depth of 850 metres.
Armour said last week that the well was encountering the various prognosed gas and oil prospective formations at predicted depths and is expected to enter the primary Barney Creek Shale and the Coxco Dolomite targets at 620 metres and 720 metres depth respectively.Â
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.