Armour Energy spuds Horseshoe 4 development well

Australia’s Armour Energy has spudded the Horseshoe 4 (HS4) development well, the second among the planned two-well programme of the company.

The programme is being delivered as part of Armour’s 2019 work programme under the company’s Phase 3 growth strategy.

The HS4 well is located in Armour’s 100% owned PL227 licence, which is part of the company’s Kincora gas project located on the Roma Shelf in south-west Queensland, Australia.

Armour said that the HS4 well will assess the conventional and tight‐gas potential of the working hydrocarbon system in the regional Permian and Triassic reservoirs in the Myall Creek Field.

The company noted that Silver City Drilling Rig 20 has been shifted from Myall Creek North 1 well (MCN1) and is ready to drill HS4 to a vertical depth of 2,073m.

Upon completion of flow testing of the well, the company plans to connect the HS4 well to the gas gathering system so as to enable commercial production and gas sales through the Kincora facility, as early as possible.

Through the drilling of MCN1 and the recently spudded HS4 well, Armour aims to increase liquid-rich gas production and revenue.

The company will also execute a workover campaign to optimise and increase production from the existing wells. This includes the fracture stimulation of Myall Creek 5A, which is planned to take approximately three months.

Combined with other works on the Kincora Gas Plant, the two-well work programme will enable the company to achieve its gas production target of up to 20TJ/day.

In August, Armour Energy signed a contract for the drilling of two development wells for the Kincora gas project.