Armour Energy acquires last tenements of Kincora project in Queensland

Australian company Armour Energy has completed the previously announced acquisition of the last of the tenements of its Kincora project in Queensland from Origin Energy.

The last of the tenements includes exploration licence ATP647.

Following the acquisition, Armour now holds the title for all 17 production licences, three exploration licences and four pipeline licences.

Covering more than 3,000km² of prospective acreage, the tenement area includes infrastructure connecting directly into the major gas hub on the east coast at Wallumbilla, Queensland.

The overall replacement value of the infrastructure at Kincora is estimated to be more than $250m.

The infrastructure includes the 100%-owned Newstead gas storage facility with a capacity of 7.5 petajoules (PJs) and currently has 2.3PJs of sales quality gas stored.

Armour announced on 19 July this year that its contingent resources in the Kincora project area are 105 PJs along with 1,011,978 barrels (bbls) of condensate and 214,580 tonnes of LPG.

The resources will be converted to 2P reserves once production facilities re-start and relevant project approvals are in place.

The company announced on 22 August that it has already commenced oil production from the Emu Apple field at a rate of 50bbls per day.

Armour Energy CEO Robbert de Weijer said: “We look forward to starting gas production later this year and to provide an additional gas supply into the east coast market, as well as condensate and LPG.

“The existing connection at the Wallumbilla gas hub provides Armour access to a market that will be short of gas going forward, and so represents a great opportunity for us.”