Armour Energy Limited | ASX: AJQ (22.4% owned by DGR)

On 5 October 2018, Armour announced that it had been granted ATP2030 as part of the Queensland Government’s petroleum acreage release covering the Roma Shelf, in the Surat Basin.

ATP2030 comprises 365km² and connects Armour’s existing PL71 and ATP2029, creating a significant acreage position incorporating an immense volume of over‐pressured, continuous hydrocarbon‐ saturated tight Triassic and Permian reservoir section that is being developed by Armour. This commercial play type is deep, detectable and in recent years Armour has been the only company to have issued expressions‐of‐interest to the Queensland Department of Natural Resources based upon the technical capabilities and correct operational approach to develop the resources in conjunction with Armour’s Kincora Gas Plant.

On 8 October 2018, Armour announced that the first sales gas had been delivered from its Myall Creek 4A well. Myall Creek 4A, in Armour’s 100% owned PL 511, is Armour’s first well drilled, connected and brought into commercial operations since it acquired the Kincora Project from Origin. Myall Creek 4A is still cleaning up after hydraulic stimulation, and its production rate is currently averaging approximately 700,000scf/d of liquids‐rich gas with instantaneous gas flow rates of up to 3,500,000scf/d having been achieved since the well commenced commercial operations on 5 October 2018. Myall Creek 4A is the first well under Armour’s Gas Acceleration Program (GAP) agreement with the Australian Government which provides partial funding of Armour’s four well program to be completed by June 2019.

The current value of DGR Global’s investment in Armour Energy is approximately $21 million ($10.5m in shares at market value plus $10.5m in Convertible Notes at face value).

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