- Armour Energy (AJQ) is gearing up to produce oil at its exisiting Kincora gas project in a bid to diversify its portfolio
- A recently completed ore reserve for the project in Queensland tabled a proved reserve of almost 250,000 barrels of oil
- While the probable resource includes another 1 million barrels of oil
- Armour plans to restart four wells suspended by the previous owner and drill a further two appraisal wells in the near future
- Company shares remained steady today, closing at 5.8 cents apiece
Armour Energy (AJQ) is gearing up to produce oil at its exisiting Kincora gas project in a bid to diversify its portfolio.
As part of the company’s oil development plan, it recently completed an appraisal of the reserves at the project in Queensland, according to SPE‐PRMS guidelines. The proven total reserve for Kincora is 245,600 barrels of oil.
The proven and probable oil estimate is over 1.2 million barrels of oil, while the possible, probable and proven combined resource is 2.6 million barrels of oil.
In addition, Armour has begun work overs and installation of surface equipment for four exisiting oil wells used by previous owner, Origin Energy. The company is expecting restart results within the next month or two.
These wells, however, are not expected to produce further oil but rather offer insights into field characteristics and further drilling potential.
Later in the year or in early 2020, Armour will also drill two appraisal oil wells in conjunction with gas drilling. The location for these wells has already been selected with the goal of increasing the oil reserve in mind.
Shares in Armour remained steady today and closed at 5.8 cents apiece.