Armour Energy said it has been awarded preferred tenderer status for the exploration permit ATP 1107 in Queensland, Australia.
The company has been successful in its tender for the exploration permit which lies immediately south of, and adjacent to, its existing tenement position ATP 1087, where strong and consistent gas shows were reported in the Egilabria 1 well.
The Lawn 4 formation, where the Egilabria well is contained, 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.
Armour Energy now has to receive a Native Title Agreement and the relevant environmental clearances before it can be granted an exploration permit over ATP 1107.
Armour Energy CEO Phil McNamara said, "Being awarded preferred tenderer status for ATP 1107 is an exciting development for the company as it effectively doubles Armour Energy's Queensland ground position from approximately 1.8 million acres to 3.6 million acres, increasing the company's exposure to the South Nicholson Basin and in particular the Lawn Hill Formation within the underlying Isa Super Basin."
Armour's independent consultants, MBA Petroleum Consultants has now been commissioned to assess the resource potential in the ATP 1107 which is expected to extend the regional resource inventory.