Oil and Gas News

$12m to fund Armour’s Surat Basin drilling

Gas2Grid has made a farmin proposal with Armour Energy to fund seismic and drilling activities in Queensland’s Surat Basin.

$12 million in total is planned to be invested in the program.

Gas2Grid will acquire 50 per cent of Armour’s interests in the Riverside and Myall-Bainbilla farmin blocks.

The blocks are near the Queensland town of Surat and include PL22, PL53, PL227, ATP647 and a part of PL511.

Gas2Gird aims to start the drilling, as well as other field operations, in the first half of 2022, and commence the sale of gas in the second half of the year.

With currently high gas prices in eastern Australia, this farmin is an attractive proposition for Armour Energy.

In the Riverside farmin block there are plans to drill 1 well and a two-stage fracture stimulation.

Riverside-1 was discovered in 1997 and provides a relatively low risk and low-cost opportunity to produce gas due to the fracture stimulation of the formation offer.

Meanwhile, in the Myall-Bainbilla farmin block, Gas2Grid plans to drill two wells and carry out a 3D seismic survey.

Armour Energy believes the Myall-Bainbilla farmin block has excellent exploration potential for oil and gas to be trapped within the Permian, Triassic and Jurassic aged sandstone.

Gas2Grid managing director Dennis Morton said he and other team members have been involved in many other discoveries and developments of the western Surat Basin.

“We are returning to this very attractive exploration area at a time when natural gas and oil prices are very high,” Morton said.

Morton said Gas2Grid is employing 3D seismic coverage to increase the chances of success.

“Application of 3D seismic surveys has, in the recent decade, been successfully employed in mature areas of the Cooper Basin resulting in numerous oil and gas discoveries,” he said.

“After successfully drilling a new well and fracking it or an existing well, Riverside-1, in the Riverside farmin block, we may likely have two wells in gas production from mid next year.”

The farmin program will run until the second half of 2023.

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