ARMOUR Energy’s share price, which has been falling steadily through the year, recovered yesterday after it announced Santos would farm into its vast North Queensland and Northern Territory acreage.
Armour was up 50% by the close of the market.
The big news of the week has been Santos' buy of ConocoPhillips' Northern Australia assets for close to US$1.4 billion or over A$2 billion but it is also improving its North Queensland and Northern Territory onshore footprint with a move into a huge swathe of Armour's dormant frontier acreage.
The two will jointly explore and develop the junior's extensive acreage across the South Nicholson Basin in Queensland and the Northern Territory.
Armour holds 408 million acres there alone which includes the Egilabria 2DW1 well, the first successfully fracced horizontal shale well in Australia.
Armour is now clearly looking beyond its Kincora gas project, with a presentation made to the Northern Territory Energy Club yesterday outlining its plans for the area. Armour's presentation said it is also working towards conventional gas targets.
Armour was granted the huge swathe of frontier acreage in 2011, which totals over 130,000sq.km.
It says it was the first company to lead the shale charge in Australia and had an 80% success rate. It has spent over $30 million in the NT.
Source: Energy News Bulletin
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