- Armour Energy (AJQ) has entered a trading halt while it plans and completes a capital raise
- The company says it will re-stimulate the Warroon-1 well after a contractor unsuccessfully conducted the original stimulation last year
- The work will begin next month and will be funded by a private entity who’ll cover the entire cost which is estimated at $700,000
- Armour Energy expects to come out of the trading halt on Monday, September 27, by which time the capital raise details would have been released
- Company shares last traded at 3.3 cents on September 22
Armour Energy (AJQ) has entered a trading halt while it plans and completes a capital raise.
The company hasn’t indicated how much it will raise or where the money will be spent.
Prior to entering the trading halt, Armour Energy announced this morning it will re-stimulate the Warroon-1 well which lies within the Kincora Gas Project in Queensland.
The well was drilled in 1979 to target the Showgrounds sandstone and it produced 3.5 billion cubic feet of gas, 95,500 barrels per day of condensate and 6950 tonnes of liquefied petroleum gas.
The Warroon 1 well was originally stimulated in November last year but failed due to a gel problem which is the subject of a dispute with the contractor who performed the stimulation.
As recent technical work by Armour and an independent consultant reaffirmed the potential of the well, the company plans to re-stimulate it with a funding partner.
This work will begin in October and after the clean-up phase, the well will begin flowing more gas into the Kincora Gas Gathering System for processing and sale through the processing plant.
The activities will be funded by a private entity who’ll fund the entire cost which is estimated at $700,000.
CEO Brad Lingo commented on the planned activities.
“We are excited to see further investment in the field and realise the full potential of the Warroon-1 well. Armour sees further opportunity for partnering to fund value-adding work programs and to enhance production.”
Armour Energy expects to come out of the trading halt on Monday, September 27, by which time the capital raise details would have been released.
Company shares last traded at 3.3 cents on Wednesday, September 22.