Oil and Gas News

Armour pursues ongoing optimisation of wells

Warroon-1 wellhead facilities. Image: Armour

In the last quarter, Armour commenced its Surat Basin 2022 Work Program, with plans for a fracture simulation at Warren-1 and the Myall Creek-2 perforation. 

The company said it also continues to evaluate its Cooper Basin prospects, and remains focused on the proposed demerger of all northern Basin exploration holdings through McArthur Oil and Gas. 

During the quarter, Armour planned 3D seismic activities to de-risk the Surat Basin acreage. 

These plans have been accelerated following plans for farm-in arrangements with Gas2Grid, with proposed activities including inversion work on existing SD seismic, plus acquisition of new 3D seismic within the Myall Bainbilla farm-in block. 

Under the farm-in terms, Gas2Grid will earn a 50 per cent interest in the Myall-Bainbilla block. 

Armour continues to evaluate prospects in PEL 112 in the Cooper Basin, and PEL 444, based on the charge modelling and 3D seismic. 

Armour has planned the Warren-1 fracture stimulation and Myall Creek-2 perforation for early 2022. 

Armour said it continued to focus on ‘infield optimisation’ in the last quarter, and to investigate innovative optimisation technologies with a range of vendors to help arrest premature production deadline. 

Quarterly sales volumes were lower than the previous quarter for liquids due to lower demand; however, this was offset with higher spot prices.

Other highlights for the last quarter included the appointment of a new chief financial officer. 

Previously CFO at UK-listed InfraStrata, Craig Gouws joined Armour in December 2021, replacing Toni Hawkins.