Armour Energy updates on certification of resources

Armour Energy update on certification of resources

Armour Energy provided an update on the third party independent certification of resources resulting from the Egilabria 2 DW1 well, a lateral drilled in ATP1087 Queensland, by the Company in 2013.

Armour Energy has a 100% working interest in ATP1087.

As reported in August 2013, the Egilabria 2 DW1 (lateral) well was cased and hydraulically stimulated in the Lawn Hill Formation in ATP1087

During the flowback of stimulation fluids at Egilabria 2 DW1, the Lawn Hill Formation produced gas at surface comprising a very high methane content, together with ethane, helium, other inert gases and very little C02 and other inert gases. Gas production through an on-surface separator commenced after recovery of approximately 45% of the stimulation fluids.

The company reported Contingent Resources of 364 BCF / 350PJs (3C) over a 64 km2 area around the Egilabria E2 DW1 lateral well.

The company’s forward plan is to focus on sweet spot definition and further evaluation of the Lawn Hill Formation fairway prior to continuing testing of an initial pilot well. Further appraisal of the basin will be planned as part of the 2015 work program for ATP1087 with the aim of increasing the Contingent Resources significantly in the Lawn Shale, in addition to the appraisal of the underlying Riversleigh Formation, which is deeper, similar in thickness to the Lawn, has up to 11% Total Organic Carbon content, and is more widely distributed in the basin.

The Lawn and Riverslea Shales cover an area of at least 1,500km2 on the eastern side of Armour’s 100% owned ATP1087.

Press Release, July 16, 2014


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