Armour Gets QLD Acreage with Oz-only Sale Rules
Australia’s Queensland state government has granted another prospecting licence with domestic-sale only conditions, giving it to Brisbane-based Armour Energy, the Queensland Mines Minister Anthony Lynham said September 12.
The Authority to Prospect (ATP) is for the Roma Shelf in the Surat Basin and covers 318 kilometres2.
“Future production wells strategically drilled close to the Company’s existing in-field infrastructure can be rapidly connected into the east coast pipeline network, which is a big positive for the Company and all stakeholders, including investors and shareholders,” Armour’s CEO Roger Cressey said.
Armour is currently producing gas at 9 TJ per day from its existing wells across its 100% held tenements plus its Newstead gas storage facility. This gas is being sold under the company’s gas sales agreement with Australia Pacific LNG, Armour says.
The Queensland Resources Council chief executive Ian Macfarlane welcomed the news, hailing Queensland as doing the heavy lifting to help ease the east coast gas squeeze, which is threatening the region’s LNG exports.
“It’s time for both sides of politics to consider rewarding States that do develop their resources, at the expense of those who don’t,” he said.
Armour is one of a trio of domestic-only gas tenure holders in Queensland.
Senex is progressing tis Project Atlas in the Surat Basin on the first land the Queensland Government granted with the production conditions. And, Armour and Central Petroleum won tenders in March to explore almost 500ha earlier this year, and the ATP is the next stage for Armour. Central Petrol gained its ATP last month, the state government noted.
“I echo the call from the Queensland Resources Council for the Commonwealth to reward Queensland for its commitment to gas development,” Lynham said.
“Canberra could start by funding more gas infrastructure to support our gas explorers and producers in getting gas to market,” he said.