Armour Energy Updates on Northern Territory Exploration Program, Australia

Armour Energy provided an update on the planned 2013 Northern Territory exploration program.

Gas resources (potentially upgradeable to gas reserves) targeted by Armour Energy as part of the Company’s 2013 Batten Trough exploration programme comprise both conventional and unconventional accumulations.

Armour also continues to focus on its extensive unconventional naturally‐fractured and shale gas accumulations in the Batten Trough with a current mean prospective resource of 18.7TCF estimated within the Lynott, Reward and Barney Creek Formations.

Armour has previously reported discoveries of unconventional gas accumulations in the Lynott and Reward Formations at the Greater Cow Lagoon Structure of 100.4BCF (120PJ), located north of the McArthur River Mine.  Further unconventional resources are expected at the Ryan’s Bend, Looking Glass and Batten Creek targets to the west of the Greater Cow Lagoon Structure (Figure 3).

The gas discovery in the Barney Creek Formation at the Glyde 1 vertical well substantiates MBA Petroleum Consultants’ estimate of a mean prospective resource of 18.6TCF in the Barney Creek Shale within EP 171 and EP 176. A P90 (or 90% probability level) of 3.6TCF recoverable gas resource was assessed by MBA Petroleum Consultants for this same area.

As with the Cow Lagoon 1, Glyde 1 and Glyde 1 ST1 wells, Armour will continue to gather extensive data to further substantiate the unconventional resource potential of the Barney Creek Formation.  Several studies are underway on the Barney Creek Formation samples and log data from Cow Lagoon 1, Glyde 1, and Glyde 1 ST1 wells that will aid further targeting of a future lateral well with fracture stimulation in the Barney Creek Formation.   As with the Glyde 1 and Glyde 1 ST1 wells, this lateral drilling prospect will likely be performed in conjunction with a vertical well exploring the underlying Coxco Dolomite.

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LNG World News Staff, February 12, 2013; Image: Armour Energy