Armour Energy: Egilabria 2 Well Shows More Gas, Australia

Armour Energy announced that the Egilabria 2 gas exploration well has reached a total depth at 1900 metres. The well penetrated the bottom of the target Lawn Shale at 1810 metres, 65 metres lower than forecast, confirming a highly prospective Lawn Shale target interval on logs of 137 metres, approximately 12 metres thicker than the 125 metres expected.

Gas has been detected over a length in excess of 800 metres from the approximate interval of 1091 metres to 1900 metres.

When deepening the hole toward 1900 metres, a flare up to 5 metres long and with a methane peak of 27% (C1 – 204,993ppm, based on on‐site chromatography) was observed at 1870 metres for 5 minutes after the well was re‐opened (refer Figure 2) following a brief shut in to change a rig component. Continuing background readings continued at depth below the Lawn Shale, consistent with observations on Egilabria 1 indicating an extensive gas column.

Armour said it considers the results to be very encouraging, and support the case for the lateral and fracture stimulation planned for the next stage of the well. Drilling of the lateral is expected to start within the coming days. Meanwhile Armour is continuing to analyse the extensive suite of logging data successfully acquired which will help with the detailed design for fracture stimulation to optimise productivity from the Egilabria 2 DW1 lateral. While analysing this data, Armour will be plugging back the vertical section of the well in order to ‘kick off’the lateral well from the mid section of the Egilabria 2 vertical well.