Monday, July 30, 2012

Armour Energy continues McArthur Basin drilling, targets previous gas flow

Pdf Monday, July 30, 2012 by Bevis Yeo

(ASX: AJQ) has spudded another McArthur Basin unconventional gas well near a gas flow discovery made by Amoco Minerals in 1979.

Glyde-1 targets the basal section of the Barney Creek Formation and the underlying Coxco Dolomite that had flowed gas in the 1979 zinc exploration well.

Drilling from the current depth of 234 metres will be carried out under balanced using compressed air towards the planned total depth of 800 metres to reduce the possibility of formation damage.

The well is part of the company?s aggressive drilling program of up to 9 vertical wells and 3 lateral wells in EP 171 and EP 176 that will be carried out over the next two years.

This initial work also includes the completion of 2? multi stage fracture stimulation programs.

McArthur Basin

The McArthur Basin is known to host oil and gas shows and has been assessed by MBA Petroleum Consultants to hold combined mean prospective resource of 18.8 trillion cubic feet of gas and 2 billion barrels of associated liquids within Armour?s EP 171 and EP 176.

Commercialisation of any discoveries will be aided by the proximity of the Basin to the Carpentaria Highway as well as the pipeline running along the McArthur River to Darwin.

The prospectivity of the Basin has drawn other companies as well.

(ASX: EEG) is currently working with the University of Adelaide?s Kennedy Research Group (KRG) to conduct geological studies on Empire?s McArthur Basin exploration licence applications.

These studies will focus on identifying the most prospective areas for shale oil and gas drilling, through available data and the generation of critical information, allowing EEG to locate the initial exploration wells.

Empire?s wholly-owned subsidiary Imperial Oil & Gas holds a 14.6 million acre (59,000 square kilometre) slice of the McArthur Basin.

While no petroleum exploration has been carried out on the assets, a mineral core hole on an adjacent lease had sustained a 6 metre gas flare for about 6 months, burning an estimated 1 billion cubic feet of gas in this time.

United Orogen (ASX: UOG) also holds 2 licence applications in the Basin while Falcon Oil & Gas (CVE: FO) has successful fracture stimulated and flowed gas from its Shenandoah-1 well in the Beetaloo Basin, which is a separate satellite of the McArthur Basin.

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Source: http://www.proactiveinvestors.com.au/companies/news/31831/armour-energy-continues-mcarthur-basin-drilling-targets-previous-gas-flow-31831.html

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