Armour Energy secures a new exploration license in the highly prospective gas and liquids region of Surat Basin.
The company announced that Queensland Department of Natural Resources, Mines and Energy has awarded the company with further Roma Shelf Petroleum acreage in the Surat Basin. It has been reported that Armour’s wholly owned gas pipeline infrastructure traverses the newly awarded exploration area that is highly prospective for liquids and gas.
With these extended rights the company is now equipped to meet its commitment for further development of oil, gas and liquids from the Roma Shelf. The objective of the company is to draw benefits from existing strong gas demand in East Coast Energy Market.
After receiving the notification from Department of Natural Resource, Mines and Energy, Armour Energy’s CEO, Mr. Roger Cressey stated that award of this plan adds to the Armour’s reinvigoration plan of the large Permian gas and condensate plays of the Surat Basins. He added that the company’s ongoing activities have clearly demonstrated the long-term oil and gas production ability of Surat’s conventional reservoirs.
CEO Mr. Roger Cressey further appreciated the government decision as securing this award was of great importance for the company while moving ahead in the development, exploration and production of gas in Queensland.
Santos and Shell will be the neighbor to Armour as the recent joint venture between Santos and Shell has been reported to include the exploration of natural gas in the new acreage of Bowen Basin that is beneath the Surat Basin. The Shell-Santos joint venture aims to push the significant new gas supply into the Australian east coast domestic gas market.
Moreover, Armour’s new acreage is located near the company’s existing Kincora Production Facilities. The company further informed that Kincora Project is currently producing 9 terajoules of gas per day, which gets is being sold under the company’s existing gas sales agreement through its 100% owned tenements. As a part of Armour’s 4-phase growth strategy, the company aims to achieve the production of 20 TJ of gas per day in 2019.
Following a refurbishment of company’s existing LPG circuit, Armour is currently producing up to 19 tons per day of LPG and 170 barrels per day of light oil or condensate. Further, in addition to its natural gas sales, Armour Energy intends to increase the production of LPG, oil and condensate as a part of its growth strategy.
In a separate release to ASX, Armour Energy Limited provided that Mr. Karl Schlobohm has been ceased to act as the alternate Non-Executive Director of the company.
With this announcement, the share price of Armour Energy Limited (ASX: AJQ) rose by 3.226% to last trade at $0.096 on 16 November 2018. But over the past one year, the stock has witnessed a negative performance change of 6.58%.
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