Armour Energy Provides Update on Surat Work Programme

Source: 1/10/2022, Location: Not categorized


- Warroon#1 re-stimulation work program has commenced with the main re-stimulation work to take place later today and first stabilized gas flows are expected within 2 to 3 weeks

- Myall Creek #2 workover has also commenced and will be followed by perforation of the lower Tinowon formation later this week

- The Warroon#1 and Myall Creek #2 stimulation projects are 100% funded by Armourís partners

Warroon-1 Fracture Re-stimulation Update

The Warroon-1 fracture re-stimulation is expected to take place later today following successful mobilisation of equipment and crews. This programme was forecast to commence pre-Christmas, but wet weather along with the availability of key contractor personnel and continuing COVID-19 travel restrictions between Queensland and Western Australia resulted in further delays.

The fracture re-stimulation is to be executed by Schlumberger following successful mobilisation of equipment and crews. The fracture re-stimulation programme is targeting an unproduced gas-bearing interval in the Basal Rewan formation sandstone which has previously not been commercially produced in the Warroon Field. Following a successful re-stimulation, first stabilized gas flows are expected within 2 to 3 weeks.

As previously announced (refer ASX Announcement 23 Sept 2021), Armour reached agreement with a private entity in September 2021 to fund the re-fracture stimulation of Warroon-1. The stimulation will target the Basal Rewan sandstone. In exchange for a 50% share of the incremental production uplift over 6 years, the private entity will fund 100% of the capital (estimated cost of $700k).

Myall Creek-2 Programme Update

The workover programme on Myall Creek-2 (refer ASX Announcement 01 Nov 2021) has also commenced. The well will be cleaned out and recompleted to enable testing of potential bypassed pay in the Tinowon C reservoir.

A workover rig will isolate the depleted Tinowon A perforations behind a straddle packer arrangement designed to facilitate future fracture stimulation. The Tinowon C reservoir will be perforated through tubing and flow tested inline for a 30-day extended production test. At the end of the test period, a decision will be taken on the feasibility and timing of the Tinowon C stimulation. As part of the programme, a Pulsed Neutron Log will also be conducted to evaluate the gas saturations of the Bandanna and Black Alley reservoirs as future stimulation targets.

Armourís CEO Brad Lingo said:

'We are very excited to get underway with our 2022 production enhancement field work by commencing these two high impact work programmes which offer potential strong long-term production returns for Amour shareholders and our funding partners. A successful outcome in both the Warroon and Myall Creek programs will provide further endorsement of the production potential of two different play intervals that span a large part of Armourís eastern exploration acreage'.

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