Armour Energy Ltd. reported Friday that the transfer of tenements (exploration license ATP647) of its Kincora Project -- which the firm had acquired from Origin Energy Ltd. in September 2015 -- in the Surat Basin, Queensland, Australia has now been completed.
The company now hold titles for all 17 production licenses, 3 exploration licenses and 4 pipeline licenses in the tenement area, covering 1,158 square miles (3,000km square kilometers) of prospective acreage as well as infrastructure connecting directly into the major gas hub on the east coast at Wallumbilla, Queensland.
The overall replacement value of the Kincora infrastructure is estimated at more than $189 million (AUD 250 million), with the infrastructure including the 100 percent owned Newstead gas storage facility that has a capacity of 7.5 petajoules (PJs), including 2.3 PJs of sales quality gas currently stored in it.
Earlier on July 19, Armour said the 2C independantly verified contingent resources in the Kincora project area stood at 105 PJs plus 1,011,978 barrels of condensate and 214,580 tons of LPG (liquefied petrroleum natural gas). These contingent resources will be converted to 2P reserves upon re‐start of production facilities and relevant project approvals.
"We are pleased that we have now completed the transfer of all tenements from Origin. We look forward to start gas production later this year and to provide an additional gas supply into the east coast market as well as condensate and LPG. The existing connection at the Wallumbilla gas hub provides Armour access to a market that will be short of gas going forward, and so represents a great opportunity for us," Robbert de Weijer, Armour’s CEO commented in the press release.
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