Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Review of operations and activities continued
for the year ended 30 June 2020
OPERATIONS REVIEW CONTINUED
SURAT BASIN ASSETS CONTINUED
Kincora Production Drilling continued
Also, during the December 2019 Quarter, Armour successfully fractured stimulated the Myall Creek #5A Permian sandstones
across the lower Bandana and Upper Tinowon formations. The well was brought online and achieved an initial production wellhead
rate (IP30) of 3.2 TJ/d. The well continues to exceed expectations and follow-up candidates are being considered.
In addition to new production wells, Armour has continued to restart existing well stocks and optimise the gathering system, with
the addition of field compression. Low costs efforts to connect and restart Kungarri 1 and Riverside 1 have resulted in an initial
Ⓒ combined wellhead rate (IP30) of 0.37 TJ/d. Further intervention and workover efforts continue to be considered for other existing
wells in the gathering network.
Sell
Kincora Gas Reserves Upgrade
On 12 June 2020, Armour provided an update on the Company's gas growth and development plans for the Kincora Gas Plant
which highlighted:
AD).
2P gas reserves increased by 22% to 150.3 PJ.
Material long term potential demonstrated across the wider Kincora Project.
Reserves independently verified.
The following numbers in Table 1 and Figure 4 have been evaluated in accordance with the Society of Petroleum Engineers
Petroleum Resources Management System (SPE-PRMS) and independently certified and documented in Armour Energy's
Hydrocarbon Reserves (as at 31 December 2019) report.
Armour's successful hydraulic stimulation of Myall Creek 5A, the drilling of the Horseshoe 4 gas well and ongoing geological and
reservoir studies across the greater Kincora Project have contributed to the upgrade in reserves.
Armour has re-evaluated existing discovery wells and identified significant tight gas from the Myall Creek area and south along
the western flank of the Roma Shelf in its operated authority-to-prospect, potential-commercial-areas and petroleum licences.
Multiple hydrocarbon saturated tight liquid rich gas reservoirs are present in cased/suspended wells and offer further opportunities
to accelerate production. Armour has commenced plans to hydraulically stimulate existing well stock in 2020 and in 2021. These
efforts are expected to contribute to gas production and further characterise the fields for future drilling and ultimately contribute to
the reserve's maturation strategy.
Kincora Oil Reserves and Resources Initial Booking
Armour completed an extensive review of its acreage for oil exploration, appraisal, and development potential. During the financial
year, Armour's technical staff progressed geological and engineering studies across the greater Kincora Project. As a result of
these studies, Armour has identified a previously unbooked oil reserves and resources. Refer to Armours' ASX announcement of 18
February 2020 for more information.
The following numbers in Table 2 and Table 3 have been evaluated in accordance with the Society of Petroleum Engineers -
Petroleum Resources Management System (SPE-PRMS) guidelines, independently assessed and approved.
Kincora Oil Project - Reserves
Estimated Total Oil (BBL)
1P
2P
3P
245,600
1,220,600 2,639,500
Table 2 Armour Energy Bowen-Surat estimated net aggregate quantities of Oil Reserves
Notes
Kincora Gas Project
Gas (Bscf)
Sales Gas (PJ)
LPG (T)
Condensate (Bbl)
Table 1 Combined Armour Energy Gas Reserves
1P
59.33
67.4
139,000
670,000
For
350
Armour's Kincora Gas Reserves (PJ)
300
250
200
150
294
321.1
100
50
123.6
150.3
169.1
67.4
61.7
35.2
39.6
0
12
Dec-17 Dec-18 Dec-19 Dec-17 Dec-18 Dec-19 Dec-17
1P
1P
1P
2P
2P
2P
3P
"
Reserve numbers in Table 1 only reflect new Oil Reserves
Reserves are classified according to SPE-PRMS
Reserves are stated on a risked net basis with historical production removed
Reserves can be lifted and sold on behalf of any minority interest holder
Reserves are stated inclusive of previous reported estimates
2P
132.2
3P
282.4
.
•
150.3
321.1
.
Bbl
310,000
1,493,000
663,000
3,191,000
.
barrels, kbbl = thousand barrels, mmbbl = million barrels
1P = Total Proved, 2P = Total Proved + Probable, 3P = Total Proved + Probable + Possible
Kincora Oil Project - Contingent Resources
Estimated Total Oil (BBL)
1C
2C
3C
1,231,000 3,696,000
8,019,000
Notes
Petroleum reserves are classified according
to SPE-PRMS.
Petroleum reserves are stated on risked net
basis with historical production removed
Petroleum Reserves have no deduction
applied for gas used to run the process plant
estimated at 7%
Table 3 Armour Energy Bowen-Surat estimated net aggregate quantities of Oil Contingent Resources
Notes
Contingent Resources numbers in Table 2 only reflect new Oil Reserves
Contingent Resources are classified according to SPE-PRMS
Contingent Resources are stated on a risked net basis with historical production removed, where applicable
Contingent Resources can be lifted and sold on behalf of any minority interest holder
Contingent Resources are stated inclusive of previous reported estimates
The aggregate 1C may be very conservative and the 3C very optimistic because of arithmetic summation
Dec-18 Dec-19
3P
3P
Petroleum Reserves can be sold on behalf of
any minority interest holder
"
Petroleum Reserves are stated inclusive of
previous reported estimates
.
Bbl barrels, kbbl = thousand barrels, mmbbl = million barrels
■1P Dec-17
1P Dec-18
■1P Dec-19
■ 2P Dec-17
■2P Dec-18
Figure 4 Armour Energy Reserves growth as per 31 December 2019
BSCF billion cubic feet, PJ = petajoules,
bbls barrels, gas conversion 1.137 PJ/BCF
1P Total Proved; 2P = Total Proved +
Probable; 3P Total Proved + Probable +
Possible.
LPG Yield 2065 tonnes/petajoules,
Condensate Yield 9938 barrels/petajoules
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