Armour Delivers First Gas Sales from Oz Myall Creek
Armour Energy has delivered first gas sales from its recently drilled Myall Creek 4A well in Queensland, Australia, the company said October 8.
The well connection works were completed and commissioned on October 5, it said.
“The well continues to clean up after hydraulic stimulation and the average production rate since the well commenced commercial operations is 700,000 feet3/day of liquids-rich gas with instantaneous flow rates of up to 3,500,000 ft3/day,” Armour said.
“Since February 2018, Armour’s continued gas production and sales of 9 TJ/day has included on average just under 2 TJ/day from the Newstead gas storage facility. With Myall Creek 4A on line, field production rates should increase sufficiently to enable the volume of gas remaining in Newstead storage (approximately 1.35 PJ) to be primarily utilised for operational flexibility and opportunistic sales to maximise revenue during the ensuing months, particularly as gas prices historically peak in the summer season,” it said.
Myall Creek 4A, in Armour’s 100%-owned PL 511, is the company’s first well drilled, connected and brought into commercial operations since it acquired the Kincora Project from Origin Energy.
It is also the first well under Armour’s Gas Acceleration Program agreement with the Australian Government, which provides partial funding – of up to A$6 million ($4.23mn) – of the company’s four well program to be completed by June 2019.
The results of the Myall Creek 4A well are being analysed and evaluated and the information will be used to formulate Armour’s future drilling and completions operations with planning well advanced for the drilling of the next well in the program, it said.