Armour Starts Connection Works at Oz Myall Creek Well

Armour Energy has started connection works at its Australian Myall Creek 4A well in the state of Queensland and intends to see commercial production operations underway in September, the company said August 30.

“The well is currently shut-in on build-up in preparation for the installation of the 2-3/8-inch production tubing. Gas and liquids production will then be put through the production tubing which is expected to enhance the lifting of the hydraulic stimulation fluids and continue the clean-up of the well compared to operations to date being through the 4-1/2-inch casing,” the company said.

Armour announced earlier in the month that the well, which it 100% owns, was producing 2mn ft³/day – adding that it expects the rates to rise.

“Increased production from the liquids-rich Myall Creek 4A well will enhance the Kincora Gas Plant operations and efficiencies. Since February 2018, Armour’s gas production and sales of 9 TJ/day has included on average just under 2 TJ/day from the Newstead gas storage facility,” the company said.

“With Myall Creek 4A coming on line, field production rates should increase sufficiently to enable the volume of gas remaining in Newstead storage (about 1.1 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 added.

Armour is still receiving and evaluating results from Myall Creek 4A with a view to finalising the design of future drilling and completions operations.