Armour to Start Queensland Shale Drilling

Armour Energy has commenced preparation for its four well drilling program in near Egilabria, Queensland, Australia.

The program will commence in ATP 1087 located in North Queensland where three vertical wells and one lateral well are planned with work scheduled to commence in the week commencing on 6th May, the company said.

These wells will target the highly prospective shale gas potential of the Lawn Hill Formation. 

The first well of the program will be the Egilabria 2 vertical well to a planned depth of 1750m. The Egilabria 2 DW1 Lateral well will then be drilled from the Egilabria 2 vertical well to a measured depth of
2360m to establish a 600m sub horizontal lateral wellsection within the Lawn Hill Formation.

Halliburton Energy Services have been contracted to carry out a six stage hydraulic stimulation of the Egilabria 2 DW1 well in July 2013 to test the shale gas production potential of the Lawn Hill Formation.

Armour Energy and its independent expert consultants believe the Lawn Hill Formation contains aprospective recoverable resource of 22 TCF (Trillion Cubic Feet) of gas. Armour believes this provides
potential to define up to 9 TCF of resources and reserves over the next three years. 9 TCF is sufficient gas resource to support 6million tonne per annumof LNGproductionformore than 20 years.