Armour Energy's Cow Lagoon 1 Delivers First Gas Resources

Armour Energy has reported that a resource assessment of the Cow Lagoon 1 well has been completed and the gas-in-place and a mean prospective resource for the Greater Cow Lagoon Structure has been defined.

Cow Lagoon 1 was drilled to 1804m and discovered gas flows and shows in the Lynott and Reward Formations on the Cow Lagoon West Anticline during underbalanced, air-mist drilling operations. The Cow Lagoon Anticline is located within the Batten Trough, in the McArthur Basin, Northern Territory, Australia.

Further evaluation of the seismic data indicates that Cow Lagoon is part of a greater structure that is holding a mean prospective resource of 100.4 BCF in the Lynott and Reward formations.

Armour Energy is currently reprocessing and reinterpreting the regional seismic line (02GA-BT1, 20020 that extends across EP 176 using the vertical seismic profile (VSP) data acquired at Cow Lagoon 1. Other areas similar to the greater Cow Lagoon structure have been identified on the seismic line at three potential down dip locations named Batten Creek, Looking Glass and Ryans Bend where the Lynott, Reward and Barney Creek Formations are approx. 1500 to 2500 m deep. 

Armour Energy intends to drill test these targets via a core drilling program which will also enable drill stem testing and permeability assessment of any gas bearing units encountered.