Past year: ▼ 20%(10.0c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
12 Nov 2019drilling result▲ GoodMajor
Horseshoe 4 reached 2,169 m, deeper than the prognosed depth, with no further issues. Logging and pressure testing indicate multiple hydrocarbon-bearing Triassic and Permian sands. Perforation is expected in early December, with gas to market by end-2019. No flow rate yet.
4 Nov 2019drilling progress report▲ Good
Horseshoe 4's stuck pipe was freed on 1 November and drilling resumed, reaching 1,704 m by 3 November. Armour will set 7-inch casing, then drill to the 2,073 m target, and says completion remains on schedule barring further delay. Resolves the 31 October setback.
31 Oct 2019drilling progress report▼ Bad
Horseshoe 4 drill pipe became stuck at 1,523 m in the Hutton Sandstone. Armour is trying to free it, with a sidetrack as fallback to the 2,073 m target. This is a setback to the second well of the 20 TJ/d push, with cost and delay impact not stated.
22 Oct 2019drilling spud● Neutral
Horseshoe 4 was spudded on 21 October in 100%-owned PL227, to a prognosed 2,073 m vertical depth. It is the second well of the two-well program. It will be connected to the gas system after completion and flow testing. This follows the Myall Creek North 1 well.
16 Oct 2019drilling result▲ GoodMajor
Myall Creek North 1 logging and pressure testing found thick Tinowon sandstones with encouraging gas response, potentially with enough pressure and permeability for conventional production. Production casing is cemented; a flow test is planned in coming weeks, with gas to market expected before year end. No flow rate yet.
15 Oct 2019farm in farm out agreement▲ GoodMajor
Armour signed a binding term sheet for Santos to farm into its South Nicholson Basin project (ATP1087 and applications), taking 70% and operatorship. Armour gets $15m cash upfront, up to $15m more on conditions, and a free carry to $65m of spending over 4 years. Formal agreement targeted by 31 Oct.
14 Oct 2019drilling progress report▲ Good
Myall Creek North 1 reached about 2,298 m measured depth. Elevated gas readings in the Permo-Triassic suggest liquids-rich gas-filled porosity. Logging started 14 October, then casing, completion design and a flow test. No flow result yet.
9 Oct 2019drilling progress report● Neutral
Myall Creek North 1 was at 1,885 m, about to enter the target zones (prognosed 1,930–2,100 m). Intermediate casing was installed and tested. Logging and a flow test follow; the program is now to finish before year-end. No result yet.
2 Oct 2019drilling progress report● Neutral
Myall Creek North 1 has cemented surface casing and was drilling at 1,361 m measured depth, aiming for about 2,343 m. A flow test is planned after completion. No gas result yet.
23 Sept 2019drilling spud▲ GoodMajor
Myall Creek North 1 spudded in 100%-owned PL511, targeting Permian and Triassic gas to 2,270 m TVD. Horseshoe 4 follows, with Myall Creek 5A fracture stimulation run concurrently. The program is about three months, and success matters for the 20 TJ/d push.
19 Aug 2019drilling scheduled▲ Good
Armour contracted a rig for two development wells at 100%-owned Kincora, at Myall Creek (PL511) and Horseshoe (PL227), each about 2,100 m deep. The first is to spud in September 2019, with production planned for Q4. This follows the quarterly report's rig tender.
18 Feb 2019resource reserve update▲ GoodMajor
SRK-verified Kincora 2P gas reserves rose 56% since October 2018 to 123.6 PJ, with 2P condensate at 1.23m bbl. Armour says 2P gas reserves doubled over calendar 2018. Reserves are stated at 100% Armour, excluding the Waldegrave JV.
13 Dec 2018drilling result▲ Good
Myall Creek 5A, drilled to 2,244.5 m, showed gas in the Triassic Basal Rewan and Permian Tinowon sandstones; logs indicate hydrocarbon saturation. The well is cased and suspended, with perforation testing planned. Armour also flags the Black Alley Shale as a possible new regional play. No flow rate yet.
27 Nov 2018drilling result▲ Good
Myall Creek 5A reached 2,244.5 m, with good gas shows in overpressured Permian sandstones, and mudlogs indicate the zone is hydrocarbon saturated. Logging is under way and production casing will be run next. This is early indication only; no flow rate is reported.
21 Nov 2018drilling progress report● Neutral
Myall Creek 5A drilled the 8-1/2 inch section to 1,875 m after the earlier sidetrack. The 7 inch casing is being run, with the 6-1/8 inch production section to follow to 2,284 m measured depth. No production result yet.
12 Nov 2018drilling progress report▼ Bad
Myall Creek 5A lost part of its drill assembly, which became differentially stuck and could not be retrieved. The well was cemented back to the 9-5/8 inch casing shoe and a sidetrack was under way. Armour said the lost equipment was insured.
1 Nov 2018drilling spud▲ GoodMajor
Myall Creek 5A was spudded in PL511 (100%), planned to 2,355 m, and is the second well of the GAP-part-funded program. It targets about 4.4 PJ of gas. Armour says production should lift to 20 TJ/d over the next 12 months.
30 Oct 2018resource reserve update▲ GoodMajor
SRK-verified Myall Creek 2P reserves rose 40% from 44.4 PJ to 63.1 PJ after the 4A well, replacing all historical field production of 18.7 Bcf. Total Kincora 2P reserves net to Armour are now 79.3 PJ.
30 Aug 2018drilling progress report● Neutral
Myall Creek 4A is shut in awaiting production tubing, with the workover rig scheduled for the second week of September and commercial production planned for September. Armour is investigating the earlier stuck-tool incident and has reserved rights against Halliburton and Firetail.
16 Aug 2018drilling progress report▼ BadMajor
Myall Creek 4A's 7 Aug rate of 2 MMcf/d was recalculated to 1.7 MMcf/d after a contractor measurement error; flow is now unstable at 0.6-0.8 MMcf/d. Extra perforations (65 m) and production tubing come next, with commercial production now planned for September 2018.
6 Aug 2018drilling progress report▲ Good
All five Myall Creek 4A stimulation stages are complete (424,678 lbs proppant vs 406,750 modelled) and the well is flowing back under its own pressure. Flow test results are expected by mid-August; tie-in follows if successful.
31 July 2018drilling progress report▲ Good
The lost tool was recovered and Myall Creek 4A stage 3 was stimulated (56,584 lbs proppant vs 60,500 modelled). Stages 4 and 5 remain, then flow back and testing. This resolves the stuck-tool delay reported on 23 July.
23 July 2018drilling progress report▼ Bad
Two of five stimulation stages on Myall Creek 4A are done at modelled pump rates, but a tool and wire were lost down the well before stage 3. Recovery is ongoing, so the flow test timing (mid-August) may slip.
18 July 2018drilling progress report● Neutral
Halliburton has begun a 5-stage stimulation of Myall Creek 4A; stage 1 in the Lower Tinowon took 67,639 lbs of proppant against 66,750 modelled. Flow test results are expected by mid-August. If successful, the well will be tied into the Kincora plant.
14 June 2018drilling result▲ GoodMajor
Myall Creek 4A reached 2,395 m with strong gas shows through the 300 m Triassic and Permian section, up to 100% in the Permian sandstones, and a liquids-rich gas. This is a drilling indication only; casing, stimulation and flow testing still follow before any rate is known.
12 June 2018drilling progress report● Neutral
Myall Creek 4A has set 7-inch casing at 1,913 m and is drilling the final section to 2,414 m. The release sets out the planned multi-stage stimulation and a 4-inch pipeline to the compressor station. It restates 9 TJ/day sales held for 4 months and 61.7 PJ 2P reserves.
5 June 2018drilling progress report● Neutral
Myall Creek 4A has drilled and cased the surface section to 492 m and is drilling the next section toward 1,920 m. Final planned depth is 2,414 m. No new result; restates the GAP funding and 20 TJ/day target.
31 May 2018drilling spud▲ GoodMajor
Myall Creek 4A spudded in 100%-owned PL511, the first of the Phase 2 wells. Planned depth is 2,390 m, targeting 4.4 PJ of gas. It will be stimulated and part-funded by the GAP grant. Management aims for 20 TJ/day over 12 months, up from 9 TJ/day.
21 May 2018resource reserve update▲ GoodMajor
Updated Kincora reserves: 2P gas rises 8% to 61.7 PJ (from 56.8 PJ in April 2017), with 609 kbbl condensate and 126 kt LPG. New Rewan Formation 2C contingent gas is 29.3 PJ, and best-estimate prospective gas is 129 PJ. Four wells are planned for FY2019.
11 May 2018drilling scheduled▲ GoodMajor
Armour contracted to drill Myall Creek 4A, its first new production well, with spud planned by end of May 2018. It is 100% owned and part funded by the GAP grant. Target recovery is 4.4 PJ gas. PPL63 pipeline repairs are done, restoring 14 TJ/day capacity.
