Armour Energy (ASX:AJQ) is on track to increase production at its Kincora project in Queensland’s Bowen-Surat Basin after successfully flowing gas from the Myall Creek #5A well.

The well, which was successfully fracture stimulated in November, produced just under 2.4 million cubic feet (MMcf) of gas and 78 barrels of condensate (light oil) per day during testing.

By comparison, gas sales for the September 2019 quarter averaged about 7.2 terajoules (6.8MMcf) of gas and about 115 barrels of condensate per day, though this was due to the liquefied petroleum gas circuit of the Kincora gas plant being down for 26 days.

Myall Creek #5A was originally drilled in November 2018 but was unable to sustain a commercial flow rate despite intersecting a 290m gross Triassic and Permian gas-charged window.

Armour expects to recover additional stimulation fluid from the well over the coming weeks before gas is diverted into production.

Further improvements to gas production could come from its interventions of existing historical wells within the Kincora project.

The company is also undertaking completion works on the Myall Creek North #1 and Horseshoe 4 wells.


In other ASX energy news today:

Doriemus (ASX:DOR) and its operating partner UK Oil & Gas have started an extended test of their Horse Hill-2z horizontal well in the Weald Basin, onshore UK. The operator is also developing plans to isolate a natural fracture encountered while drilling that is believed to be contributing to the unexpected formation water production.