Armour Energy Spuds E4 Vertical Well, Australia

Armour Energy said that the drilling rig has moved from Egilabria 2 to its new location. The Egilabria 4 well, in the company’s 100% owned ATP 1087 in Queensland, was spudded on Saturday, 24 August.

The Egilabria 4 vertical well will be drilled to a planned depth of 1,800 m targeting multiple plays― the Lawn and Riversleigh Shales as well as the basal Jurassic sands of the Carpentaria Basin. The Lawn Supersequence in ATP 1087 was previously assessed by the company’s independent geological consultant (MBA Petroleum Consultants) to host Mean Prospective Resources of 22.5 TCF of gas.

No resource assessment has been completed for the Riversleigh Shale, potentially adding significant upside to the prospectivity of ATP 1087. The upcoming Egilabria 4 drilling results combined with the airborne geophysical survey results, and the gas shows at the 1990s Comalco Argyle Creek 1 and Desert Creek 1 wells in the Riversleigh Shale will amass a data set targeting a Prospective Resource Area up to 18 TCF of contained gas, based on the company’s previously announced in-house review of ATP 1087.

Armour previously announced that it had also identified potential for the entrapment of oil and gas accumulations in the basal Jurassic sands of the Carpentaria Basin where that sand unit is overlaid by the Proterozoic rock units of the Lawn and Riversleigh Shales. The company commissioned reprocessing of existing seismic data gathered by Comalco in 1990s, and has now identified numerous leads in addition to Egilabria 4 that have the potential to host hydrocarbon accumulations.

Egilabria 2 is being prepared for the hydraulic stimulation. Following successful logging operations, equipment is in the process of being mobilized and an 8-stage hydraulic stimulation is planned within the next 2 weeks. This will be followed by a production test.

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LNG World News Staff, September 2, 2013; Image: Armour