Armour Energy Ltd has been awarded three exploration permits located in the Roma Shelf, Bowen-Surat Basin on 20 December 2018: ATP 2034-P, ATP 2035-P and ATP 2041-P.Â  The awards add to Armourâs increasing acreage for the Roma Shelf Project with 15 production licences and 10 exploration licences (seven of which have been awarded in 2018), now covering over 4,000 sq km.Â  The permits will have an effective start date of 1 January 2019.    The permits increases Armourâs net acreage by 500 sq km in the basin (or over 10% increase) and are operated by Armourâs subsidiary company Armour Energy (Surat Basin) Pty Ltd. They have effective start dates of 1 January 2019 after being applied for in May 2018 and will expire on 31 December 2024.    ATP 2041-P, located in the Taroom Trough, has been specifically awarded as a domestic gas supply area and covers an area of 457 sq km.Â  Any gas supplied under the permit or any future associated production licences must be supplied to the Australian domestic gas market under the conditions of the award. ATP 2034 and 2035 do not hold this obligation.  ATP 2041-P was applied for as PLR201718-2-4 on 31 May 2018, with Armour announced as the preferred tenderer on 15 November 2018. Â   ATP 2035-P and ATP 2034-P, which cover areas of 12 sq km and 30 sq km respectively, were announced as being offered to Armour Energy, as the preferred bidder, on 26 September 2018.Â  Both are also located in the Taroom Trough and were applied for under PLR201718-2-6 and PLR201718-2-7, respectively. In the ATP 2034 area there is one previously drilled well, Onerry 1. The well was a dry hole.Â  The ATP 2035 area does not contain any exploration wells.  Armour reported that the permits are all prospective for both gas and liquids, and are located close to existing Armour acreage in the basin, as well as being in close proximity to existing gas infrastructure, that is linked to Armourâs Kincora gas plant.Â  Armour is planning to increase production from Kincora to 20 TJ/d (18.86 MMcf/d) and will likely look to exploring its new acreage for additional resources to add to production.  Armour was required to complete the negotiation of land access, native title and environmental agreements before the permits were awarded, as Authority to Prospect permits.  The three permits are prospective for both gas and liquids with the possibility of over-pressured tight Triassic and Permian reservoir sections which has been observed across neighbouring permits. Close to existing gas infrastructure linked to Armourâs Kincora gas plant, any commercial discoveries could be utilized to increase Armourâs production from Kincora as planned to 20 TJ/d (18.86 MMcf/d).
Australia, ATP 2041-P