Armour Energy announces exploration permits EP174 and EP190 covering 4.24 million Acres of the McArthur Basin granted to Armour Energy in the Northern
Friday, Dec 14, 2012
The Directors of Armour Energy Limited (ASX: AJQ) (the Company) are pleased to advise that the Company has been granted Exploration Permit 174 covering 4,340km2 and Exploration Permit 190 covering 12,820km2 in the Northern Territory (refer Figure 1).
The granting of EP174 and EP190 has doubled Armour Energyfs contiguous granted coverage over targeted Proterozoic shale plays in the McArthur Basin from 11,505km2 to 28,665km2. Additionally, the Company can now fully test and potentially more than double the size of the prospective Glyde Sub]Basin from 500km2 to 1300km2 within the Batten Trough of the McArthur Basin (refer Figure 2). Approximately 105,000km2 of tenements under application in Queensland and the Northern Territory remain to be granted.
Ongoing subsurface studies in these newly granted tenements, combined with detailed surface remote sensing projects by AUSMEC Geoscience, confirms that the Glyde Sub]Basin which hosts an extensive thick, organically rich hydrocarbon charged system in the Barney Creek Shale, can be mapped across the Emu Fault to the Foelsche Inlier and then north along its strike towards the Masterton Horst (refer Figure 2).
The Glyde Sub]Basin is a high priority target to be investigated by Armour Energy during 2013. The importance of the target is evidenced by the recently reported discovery at the Glyde]1 lateral, which free flowed up to 3.3 MMSCFD from penetration of the Coxco Dolomite, sourced by the surrounding Barney Creek Shale.
A gravity gradiometer, magnetics and digital terrain airborne survey at 400m line spacing will be flown by airborne geophysical contractor Fugro in early January 2013 over a selected 1,240km2 portion of the Glyde Sub]Basin with the aim of identifying subsurface structures similar to the Glyde]1 discovery and other high priority targets in the Barney Creek Shale.
Armour Energy believes that this airborne survey, which has been successfully employed to image subsurface structures in onshore and offshore portions of the Canning Basin and which led to recent hydrocarbon discoveries, will allow for a more direct exploration strategy to high grade the area for additional drilling targets, strategically locating 2]D seismic lines and magnetotelluric surveys.
With the granting of the new tenements, three new conventional prospects, namely Catfish Hole, Lamont Pass and Matheson Creek (refer Figure 2), can now be fully characterised and added to the growing number of conventional targets that may be explored whilst evaluating the unconventional potential of the Proterozoic Barney Creek Shale Play across the Companyfs NT tenements.
The Catfish Hole Anticline covers approximately 11km² and was penetrated by the Amoco 82‐6 wellbore to 300 metres and discovered oil in the Stretton Sandstone and Yalco Formations. Immediately southwest, the recently identified 11km² double‐plunging Lamont Pass Anticline has never been tested. Both structures are in close proximity to the Emu Fault where the Barney Creek Shale can be greater than 900m thick and are on trend with the Greater Coxco Field that reported a discovery of 130.7 BCF of mean prospective resource in October 2012.
The unexplored Matheson Creek Prospect, in EP190, is located on the eastern side of the Emu Fault where the Barney Creek Shale has not been tested. This overturned double‐plunging anticline covers 15km², adjacent to the major Calvert Hills Fault and is expected to have a similar stratigraphic section to Cow Lagoon‐1, which was drilled in EP176 and reported a 100.3 BCF of mean prospective resource discovery i June 2012.
Upon completion and interpretation of the airborne survey, remote sensing projects, prospect verification and associated reconnaissance field work, Armour Energy expects to resume drilling operations in the NT after completing three vertical and one lateral well in Queensland targeting the Lawn Hill Shale. The Barney Creek and Lawn Hill source rocks are similar in age and total‐organic‐content. Both are equally
proven hydrocarbon bearing shale plays with some indicating liquid rich gas shows during drilling operations.
Source: Armour Energy
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