Armour Energy reports increased reserves at Kincora project

Armour Energy has reported an 8% increase in the total proved and probable (2P) reserves at its Kincora project in Queensland, Australia.

The company’s reserves update on its operated Roma Shelf Assets determined that the 2P reserves at Myall Creek and other fields in the project area are estimated to be 58.5 billion cubic feet (BCF) of gas.

The 2P reserves of liquid petroleum gas (LPG) and condensate are predicted at 127,447t and 613,349 barrels (bbl), respectively.

During the 2018-2019 financial year, Armour plans to drill few new wells at the Kincora project, with the first well set to be in the existing Myall Creek field.

The drilling programme will see the completion of new production wells for both the Permian Tinowon and overlying Triassic Rewan Formation, which apparently represent a continuous 300m saturated hydrocarbon interval beneath the regional Snake Creek Shale seal.

Through testing, completions and flows of hydrocarbons, the company expects to move the current Rewan contingent resources to reserves, prospective resources to a contingent status.

Based on an independent report prepared by SRK Consulting (Australasia), the Rewan formation is projected to contain total proved plus probable contingent resources of 4.8BCF of gas, 10,457t of LPG and 50,326bbl of condensate.

SRK advised Armour to undertake completion of the Rewan formation to progress the resources to reserves.

Armour acquired the Kincora assets in September 2016 from Origin Energy.

The acquisition includes the Kincora Gas and LPG plant and infrastructure comprising production licences and petroleum pipeline licences.