The Board of Directors of Armour Energy Limited provided an update on its Surat Basin operations activities. In-Well-Bore (IWB) Programme 2H-2022: Throughout November and December, Armour has continued to progress production enhancement initiatives through its `in-well-bore' programme. Restoring production to Myall Creek-5A continues to be one of the primary objectives of the campaign.

Following rig release after workover operations in late October, the Rewan Formation was comingled with the Black Alley in preparation for nitrogen assisted lift operations. While production from the Black Alley remains suppressed by completion fluids, the over-pressured and unstimulated Rewan Formation continues to produce gas to sales. Unlocking access to the Rewan Formation was a secondary objective however, further demonstrates the potential of this reservoir across the field.

The forward plan is to mobilise a coil tubing unit in early January to recover completions fluids inhibiting flow from the Black Alley. The coil will also attempt to mill out obstructions in the lower bottom hole assembly isolating the Tinowon-A Formation which has not contributed to date. Restoration of production is targeted for mid- January.

Rednook-1 is a stranded gas well drilled back in November 1987. The well has never been connected due to challenging topography and high line pressures in the nearby Parknook field. The well intersects both the Showgrounds and Rewan Formations which have shown long-term sustainable production of both gas and rich hydrocarbon liquids in the nearby Parknook and Warroon fields.

Rednook-1 was successfully connected to gathering in mid-December with initial gas flow rates of 0.53TJ/day and ~30bbl condensate/Mmscfd through a 16/64 choke. been installed and commissioned. The units are currently being optimised to maximise the recovery of gas and liquids and to arrest pre-mature production decline.

These units routinely cycle the well to overcome liquid loading issues traditionally experienced in retrograde condensate and depleted reservoirs.