Gas2Grid has announced that it has ceased attempts to finalise binding agreements for the farmin of Surat Basin assets held by Armour Energy.
The project was proposed in Gas2Grid’s announcement made on November 22, 2021 and stipulated the intention to invest $12 million to fund seismic and drilling activities in Queensland’s Surat Basin.
It was going to be a profitable opportunity for Armour Energy considering the substantially high gas prices in eastern Australia.
Gas2Gird planned to start drilling in the first half of 2022 and commence the sale of gas in the second half of the year.
In declaring the cessation of this undertaking, Gas2Grid advised that it will continue to explore and pursue other appropriate onshore, easter Australia oil and gas assets.
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.
The company continues to evaluate prospects in PEL 112 in the Cooper Basin, and PEL 444, based on the charge modelling and 3D seismic.
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.