Armour Spuds Queensland Shale Well

Armour Energy spudded the Egilabria 2 well in its 100% owned ATP 1087 in Queensland on Sunday.

A six stage hydraulic stimulation of the Egilabria 2 DW1 well will be conducted in July 2013 to test the shale gas production potential of the Lawn Hill Formation.

Armour Energy believes the Lawn Hill Formation contains a prospective recoverable resource of 22 TCF (Trillion Cubic Feet) of gas. The Company believes this provides potential to define up to 9 TCF of resources and reserves over the next three years.

Armour Energy is currently investigating gas sales and development options for the resource. The project is earmarked for supply to markets in the Northern Territory, Queensland and New South Wales, as well as well as having the potential to tap into local mining and export markets.