Armour Energy Australia's vast new shale province flowing gas

[Sparty]

Highlights from today's announcement

• Egilabria 2 continuously flared gas from 30 September to 9 October 2014, after all gas flows were routed through the separator.
  
  
• Gas pressure in the annulus progressively increased to 781 psi. 64% of stimulation fluids have been recovered.
  
  
• The Egilabria 2 well is believed by Armour to be part of the most promising shale gas prospect in Australia to date.
  
  
• The Lawn Shale Formation in ATP1087 contains a best estimate gas prospective resources in ATP1087 are in excess of 22.5 18.7TCF (MBA, November 2011).
  
  
• Third party independent certifier SRK Consulting estimates Contingent Resources relating to the Lawn Hill Shale Formation in Egilabria 2 of 364 BCF 3C; 154 BCF 2C; 33 BCF 1C relating to a 64km² area around Egilabria 2 (SRK Consulting, July 2014).
  
  
• The Lawn and Riversleigh Shale Formations are expected to have large, continuous fairways estimated to be 1,500km² and 4,000 km² respectively.
  
  
• MOU relating to future gas sales of up to 7 - 9 PJ per annum entered into with MMG Century.

The Board of Armour Energy Ltd (Armour, ASX:AJQ) is pleased to provide an update on operations undertaken in ATP1087 and results to date, with a focus on the testing of the Egilabria 2 well, which was drilled to test extraction techniques for gas resources known to be present at the well's location.

October 2014 Egilabria 2 flare (ATP1087, Queensland) is available in video from the below link.


View the full announcement