Armour Energy spuds development well at Queensland gas project

Armour Energy has drilled a development well with the PL511 permit at its Kincora gas project in Queensland, Australia.

The spudding of the Myall Creek 4A well marks the start of the 2018 Kincora gas project drilling campaign.

To be drilled to a planned total vertical depth of 2,390m, the well has been designed for a multi-stage hydraulic stimulation of the proposed 300m gross hydrocarbon-charged section below the regional Triassic Snake Creek Shale seal.

In order to maximise production rates, the well will combine all three historically standalone stimulated hydrocarbon reservoirs into a single wellbore.

This will allow the company to recover an estimated 4.4PJ of gas, 44,000 barrels of condensate and 9,000t of liquefied petroleum gas (LPG).

ArmourEnergy CEO Roger Cressey said: “This well is close to our existing Myall Creek compressor station which means it can be easily connected to existing infrastructure, enabling produced gas to be processed and delivered to market quickly after well completion and connection work is done.

“Armour has been producing and selling 9TJ/day since early February this year, and when this new well is in production, we expect to see a step change in the rate of gas production and sales.

“Armour is already contributing significantly to the local region and more broadly to the east coast gas market as a steady and growing supplier. This new well will add to that and is yet another step forward for Armour in achieving its aim to become the preeminent resource owner and producer in the Roma Region.”

The drilling campaign is part of the company’s growth strategy, which includes drilling of new wells and investigations into the work over and stimulation of existing wells, targeting increased gas production of 20TJ/day over the next 12 months.

Through the activities, Armour intends to showcase a repeatable blueprint capable of delivering a low cost-high volume model for production well drilling and completion strategies across its prospective Triassic and Permian reservoirs.