Armour Energy Ltd advises that the Horseshoe 4 development well (HS4) was spudded this week. This is the second well of the planned two well program being delivered under Armour’s 2019 work program.  The HS4 well is located in Armour’s 100% owned PL227, part of the Company’s Kincora Project on the Roma Shelf in south west Queensland.

Like the recently drilled MCN1 well, the HS4 development well aims to assess both the conventional and tight‐gas potential of the demonstrated working hydrocarbon system in the regional Permian and Triassic reservoirs in the prolific Myall Creek Field.  Silver City Drilling Rig 20 has relocated from Myall Creek North 1 well (MCN1) and will drill HS4 to a prognosed 2,073 metres total vertical depth.   

The Company plans to connect the HS4 well to the gas gathering system immediately after the well has been completed and flow tested to enable commercial production through the Kincora facility, and gas sales at the earliest opportunity. Armour will keep the market informed on progress.  

Armour’s 2019 work program istargeting an increase in liquid rich gas production and revenue through the drilling of the recently completed MCN1 and this HS4 well. In addition to these wells, a workover campaign to optimise and increase production from existing wells, including the fracture stimulation of Myall Creek 5A, will be executed. The total duration of these activities is planned to be approximately 3 months.

This HS4 well, together with the recently drilled MCN1 and other 2019 work program activities, is part of Armour’s Phase 3 growth strategy. This work program, and any necessary further work on the Kincora Gas Plant, will contribute to the Company reaching its target gas production of up to 20TJ/day.

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