Armour Energy to Restart Gas Production at Kincora Project in Queensland

Australia listed Armour Energy Limited is close to recommencing natural gas production from the Kincora Project on the Roma Shelf in Queensland, and ramp up to plant capacity at the recently acquired Kincora Gas Plant.  

In phase 1 gas production is expected at approximately 5 TJ per day (1.8 PJs per annum) and associated liquids, with first gas production targeted to be achieved by end 2016, and the balance of the restart (including associated liquids) to be completed during Q1 2017.  Over time these liquid product streams are expected to add significantly to projected gas revenues and will meet the operating costs of the Kincora Project, the company stated.

Phase 2 will involve well workovers and stimulations to achieve ramp up to a total production of approximately 10 TJ/d (3.6 PJs per annum) which represents less than 40 percent of the Kincora Gas Plant name plate capacity.  Associated liquids production historically averaging 9,942 barrels of condensate per PJ of gas and 2,066 tonne of LPG per PJ of gas are expected to yield 99.4 barrels of condensate and 20.7 tonne of LPG per day.  

Phase 3 will involve drilling four new wells and deepening three existing wells during 2017, targeted to further increase production to at least 15 TJ/d plus associated liquids.

On 19 July 2016, Armour announced a fourfold increase in its 2C resources in the project area to a total of 105 PJs of 2C gas.  This 2C contingent resource will convert to 2P upon restart of the Kincora Gas Plant and activities approved to enable production from wells.