Armour Energy reports first McArthur Basin gas reserves in Australia

Armour Energy has reported its first mean prospective resource for the Greater Cow Lagoon Structure in the onshore McArthur basin in Northern Territory, Australia.

The company said that after a resource assessment of the Cow Lagoon 1 well at EP 176, a mean prospective resource of 100 billion cubic feet of gas in the Lynot and Reward formations has been defined.

Additional down-dip targets similar to the Greater Cow Lagoon structure were also identified on the seismic line at three potential down dip locations, Batten Creek, Looking Glass and Ryans Bend, where the Lynott, Reward and Barney Creek Formations are 1,500m to 2,500m deep.

Armour Energy is currently reprocessing and reinterpreting the regional seismic line using the vertical seismic profile data acquired at Cow Lagoon 1 prior to drilling and testing.

Cow Lagoon reached a depth of 1,804m and discovered gas shows in the Lynott and Reward Formations on the Cow Lagoon Anticline within the Batten Trough prospect during underbalanced, air-mist drilling operations.

Gas influxes and flares were also observed from these formations for 15 days after they were drilled.

Armour Energy plans to drill test these additional targets through a core drilling programme, which would also enable drill stem testing and permeability assessment of any gas bearing units encountered.