Northern Australia Portfolio

Project overview

DARWIN

KATHERINE

TENNANT CREEK

ALICE
SPRINGS

100 km

Gas pipeline
Major town

Major road
Railway

Company overview

Armour Energy is a publicly listed

Australian company focused on the
discovery and development of world
class gas and associated liquids
resources in an extensive and recently
recognised hydrocarbon province in
northern Australia
ASX: AJQ
Market capitalisation:
A$17.01 million at 1 June 2015
Number of shares: 303,828,057
Website: www.armourenergy.com.au
Resource: Conventional and shale
petroleum

Contact details

Armour Energy
Mr Robbert de Weijer
Chief Executive Officer
T: +61 8 6210 7666
E: rdeweijer@armourenergy.com.au
Australias Northern Territory
Government
Department of Mines and Energy
Investment Attraction Division
Ms Fiona Park
Director Investment Attraction
T: +61 8 8999 1385
E: Fiona.park@nt.gov.au
For more information on this project or
others available in the Northern
Territory, visit www.core.nt.gov.au

Armour Energy has over 139,000 square kilometres (34 million

acres) of 100% owned exploration tenements covering multiple
sedimentary basins across the Northern Territory and Queensland
with very high potential for conventional and unconventional oil and
gas. This acreage size is as extensive as the entire Barnett Shale in
Texas.
Armour Energy has third party verified prospective resources (best
estimate) of 32 TCF of gas, 1400 MMbbls of liquids and contingent
resources of 35.5 BCF (1C), 160 BCF (2C) and 374 BCF of 3C.
These resources cover only a small proportion of the companys
acreage, which highlights the potential upside for the remainder of
the large acreage position.
Gas composition is very favourable with methane levels of
approximately 90% and very little CO2 of 1-2%. Low CO2 means
lower processing costs when compared to eg Cooper Basin levels
of 1540%. Total Organic Carbon content (TOC) is world class and
among the best in Australia; in excess of 3% and up to 11%. By
comparison the Marcellus Shale in the US has TOC in excess of 5%.
The exploration results have been very encouraging towards a new
potentially large scale unconventional gas (and liquids) project in
these areas. The remainder of the portfolio is also expected to be
highly prospective.

Geology and exploration activity to date

The McArthur Basin comprises mostly mid-Proterozoic sedimentary
rocks, forming a platform cover sequence that overlies the eastern
edge of the North Australian Craton. Armour Energys permits lie
in the southern section of the Basin. These organic-rich sediments
contain plentiful hydrocarbons, which are the organic remains the
single celled algae that were the only life form at the time. Since
2012, Armour has spent approximately A$60 million on a small
proportion of its total acreage portfolio. Armour Energy has drilled
eight wells across its tenements covering the McArthur, Nicholson,
Isa and Georgina basins, encountering oil and/or gas from seven of
those wells. In 2013, the Glyde 1 discovery in the Northern Territory
flowed more than 3mmscf/d on test, and gas shows and oil were
encountered at the Lamont Pass 3 well. In September 2014, the
Egilabria2 well in northwest Queensland, the first to successfully
apply multi-stage, hydraulically stimulated horizontal well technology
in Australia to a shale formation, started to continuously flow gas
during the flowback recovery process.

Infrastructure
The project straddles the northern border of Australias Northern
Territory and Queensland. The area is characterised by low
landholder density and the company has worked to develop
strong relationships with native title stakeholders. The existing
Daly Waters to McArthur gas pipeline passes through the project
acreage and the existing Carpentaria Gas pipeline to Mt Isa
is roughly 300km from Armours Queensland tenements. The
Carpentaria Highway, airfield, and the town of Boroloola service
the project area.

Project economics

With a number of existing and new built LNG plants in Darwin

(NT) and Gladstone (Queensland) gas demand is expected
to triple within the next 3 years and gas prices are projected
to trend towards LNG netback. Armour Energy believes it can
potentially provide a very significant new gas supply to both
domestic and export markets through existing LNG projects
and or a green-field LNG project out of the nearby Gulf of
Carpentaria
Possible short term marketing options include gas swaps with
local mines and micro LNG for road transport and remote
power generation
Armour Energy has signed memoranda of understanding with
MMG Century to evaluate annual gas sales volumes of 7 to
9 PJs per annum and Aeon Metals for 1 to 2 PJs per annum,
and has signed a heads of agreement with APA Group to build
pipelines to nearby infrastructure as the acreage is further
matured.
The Northern Territory Government is undertaking a tender
process for the proposed North East Gas Interconnector, a
new pipeline connecting the Northern Territory gas network
with Australias east coast gas network
Recent farm-ins by Santos, Origin Energy and Total in nearby
areas indicate a strong interest in the region by major players.

Investment sought
Armour Energy is seeking joint venture partners to support the
next stage of its exploration program and to take its projects
through to the development stage.

Resource estimates
Within their Northern Territory tenements, Amour Energy has
contingent resources for conventional gas plays of 2.4BCF(1C),
6.0BCF(2C) and 10.3BCF(3C). The company also has
Best Estimate Prospective Resources of 13.0TCF gas and
1,252MMbbl condensate for potential shale plays within the
Barney Creek Formation.

Disclaimer:
This document includes information provided by third parties. The information is general in nature and is for information purposes only. The
Northern Territory Government makes no representation about the veracity or accuracy of information provided by third parties. You must rely
on your own due diligence before proceeding. You should consider seeking independent professional advice.
Northern Territory Government 2015