Kincora gas project
"Armour draws together unparalleled experience in petroleum exploration, development and production in the junior petroleum industry, and the application of this to the Kincora Gas Project will see Armour emerge with a strengthening foundation on growing oil and gas resources and production."
- Nicholas Mather, Executive Chairman
Armour Energy completed the acquisition of petroleum resources, tenures, production and transportation infrastructure assets on the Roma Self in the Bowen-Surat Basin, Queensland from Origin Energy in September 2016. The Roma Shelf Assets include the Kincora Gas and LPG Plant and Infrastructure, consisting of:
Over 3000km² of highly prospective western flank of the Taroom Trough of the Surat Basin, 15 Production Licences, 3 Authorities to Prospect and 4 Petroleum Pipeline Licences.
Gas, LPG condensate processing and gas compression facilities at Kincora, south of Roma;
A number of in field gas compression and stand alone oil gathering / processing facilities as well as inter-field pipelines;
Connection Agreement with APA Group securing access to the Roma Brisbane Pipeline from the Kincora Gas Plant at Wallumbilla;
A gas storage facility with a capacity of 7.5PJ, currently containing 2.3PJ of sales gas.
Armour's Kincora assets offer significant cashflow opportunities through the production of oil, gas, LPG and condensate. The acquisition sets Armour up to become a significant producer of oil, gas, LPG and condensate, strategically located near the Wallumbilla gas hub on the east coast of Australia. Furthermore the Newstead storage facility with a capacity of 7.5 PJs (including 2.3 PJs of contained sales gas) provides Armour with a significant business opportunity to manage this facility and to maximise returns during periods of high gas demand.
Armour plans to re-commence gas production at the Kincora project by the end of September 2017 with initial gas production rates of approximately 5 TJs per day.
The Connection Agreement with APA Group will allow Armour to supply gas to Australia Pacific LNG under the Company's Gas Sales Agreement with them. The Connection Agreement is an essential component in Armour being able to access the broader east coast gas market, including a wide range of industrial customers, wholesale customers and traders.
In December 2016, Armour exercised its pre-emptive rights with respect to Santos' interests in the Armour-operated tenements on Armour's Roma Shelf, Surat Basin assets. Armour and Santos have entered into a Sale and Purchase Deed in respect of these pre-emptive right interests. On completion of the Sale and Purchase Deed, Armour's holding in five petroleum leases around the Kincora Gas Plant will increase to 100%, enabling Armour to more efficiently operate its assets across these leases.
Kincora Gas Plant Facilities
Emu apple oil Field
Armour commenced oil production at the Emu Apple oil field (Emu Apple-1) in mid-August 2016 and has been producing at a steady rate of approximately 40 barrels of oil per day. Emu Apple-1 well is estimated to contain approximately 100,000 bbl of remaining recoverable oil in a 4 way dip closed structure in the Jurassic aged Boxvale Sandstone at a depth of 1400 metres.