eeg is a no brainer for proactive investors, page-93

Good on you Shubox for catching that news first, about Armour Energy's success with their first gas well at "Cow Lagoon".

That is adjoining EEG's tenement in the Northern Territory, so that augers very well for adding value to EEG shares.

Thank you too, for the encouragement, regarding my morning Pre-Market EEG reports, Shubox. This morning's report is once again on track with how the day has gone ...and also the release of this good news from EEG's neighbouring Armour Energy.

It is wonderful that Armour Energy (AJQ) is doing all this exploratory work, at no cost to EEG, and the spin off from it will be very profitable for EEG.



Here's the details from Armour Energy today, at:
http://www.aspectfinancial.com.au/docserver/01300195.pdf?fileid=01300195&datedir=20120524&edt=MjAxMi0wNS0yNCsxMzo1MzoyOSsxMjArNjMwNDczMTMrZXRyYWRleG1sK3JlZGlyZWN0Ky9pbWFnZXNpZ25hbC9lcnJvcnBhZ2VzL0V0cmFkZVBERlRpbWVvdXQuaHRtbCsvaW1hZ2VzaWduYWwvZXJyb3JwYWdlcy9wZGZkZWxheWVkLmpzcA==&popup=true

Armour Energy Limited
24 May 2012
Gas Encountered in Armour Energy’s First Macarthur Basin Well, Cow Lagoon 1
The Directors of Armour Energy Limited (ASX: AJQ) (the Company) wish to advise that the first
well in the program in the MacArthur Basin drill program has encountered gas shows (pictured) in
the Reward Dolomite unit in the highly prospective Batten Trough. The Batten Trough is covered
by granted EPs 171 and 176 (100% Armour Energy). The tenements cover 11,000km2 and are the
subject of an independently assessed mean technically recoverable prospective resource of some
18.6 TCF (Trillion Cubic Feet) of gas.
Picture of gas burning from the end of the 8” diameter blooie pipeline, venting the Cow Lagoon
1 well
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Cow Lagoon 1 (Armour Energy 100% and operator) has encountered gas from indeterminate
zones in the Reward Dolomite between 342 and 540 metres depth. The gas show was
encountered during air mist drilling in a tight calcite cemented dolomitic shale with poor porosity
and permeability. The flare shown in the photograph above is driven from the well by the
reintroduction of compressed air into the well after the connection of an additional pipe into the
drill string during drilling.
The well is being drilled to test the oil and gas prospective middle-Proterozoic aged sedimentary
rock section to a maximum target depth of 850 metres. The well is sited on an anticline defined
by a previous seismic line. The well is to date encountering the various prognosed gas and oil
prospective formations at predicted depths, and is expected to enter the main targets in Cow
Lagoon 1, being the Barney Creek Shale and the Coxco Dolomite formations, at 620 and 720
metres depth, respectively.
Significance of Discovery
Armour Energy and its independent consultants (MBA Petroleum Consultants) have defined a
mean technically recoverable prospective resource of 18.6 TCF of gas and 2 Billion barrels of
liquids in the Batten Trough under Armour’s granted tenements EPs 171 and 176. This has been
based on defining wet gas or petroleum liquids rich gas windows over the prospective section,
ranging from 200 to 400 metres thick and an area of approximately 300,000 acres.
In 1979 during zinc exploration activities, the narrow diameter Glyde River 9 drill core hole was
drilled on the wet gas window flowed wet gas to surface at approximately 300,000 standard cubic
feet per day from the Coxco dolomite underlying the Barney Creek Shale, at a depth of some 500
metres.
The result to date from the Cow Lagoon 1 hole located 90km to the north of 1979 Glyde River 9
well demonstrates the broad presence of both gas generating shales and dolomites of reservoir
potential in the Batten Trough of the MacArthur Basin on Armour Energy’s 100% owned
tenements. Drill hole tests of the target horizons in Abner Range and Kilgour will, if successful,
lend support to a prospective gas resource across a 300,000 acre area in the prognosed wet gas
zones in the Batten Trough.
The well is being primarily drilled to test the oil and gas potential of the Reward Dolomite, Barney
Creek Shale and the underlying Coxco Dolomite. The testing program will focus on the
assessment of maturity, organic carbon content, oil and gas content and the suitability of the
targets for lateral drilling and reservoir stimulation.
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Location Map: Cow Lagoon 1 well within EP 176 on the Batten Trough
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Future Batten Trough Program
Over the next week to 31 May, Armour expects to complete the Cow Lagoon 1 well by collecting
cores through the Barney Creek Shale and Coxco Dolomite to test for thermal maturity, organic
carbon content, liquids and gas content.
The drilling rig will then move to the Kilgour Anticline in the centre of the southern potentially
liquids-rich gas window and test the same prospective units at a deeper level of approximately
1,700 metres. This will be followed by wells in the Abner Range and then Glyde 1, which will
provide a confirmatory test of the Glyde River 9 wet gas discovery from 1979.
Armour is targeting liquids rich gas discoveries across the entire central portion of the Batten
Trough in order to define gas resources as the first step in the definition of commercial gas
reserves by 2013.
Armour expects to provide updates on progress on the well and any oil and gas occurrences as the
Barney Creek Shale and Coxco Dolomites are cored.
On behalf of the Board
Karl Schlobohm
Company Secretary
The resource estimates used in this announcement were, where indicated, compiled by MBA Petroleum Consultants,
and detailed in the Independent Expert’s Report, Replacement Prospectus dated 20 March 2012 for Armour Energy
(Chapter 9). Raymond L Johnson Jr., General Manager Exploration and Production for Armour Energy, is qualified in
accordance with the requirements of ASX listing rule 5.11 and has consented to the use of the resource figures in the
form and context in which they appear in this announcement.
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Stratigraphic table of the McArthur Basin
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About Armour Energy
Armour Energy is 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. This region has only recently had its
shale potential identified by Armour Energy. The domestic and global demand for gas, combined with the new shale
extractive technologies and experienced personnel, provides Armour with an extraordinary opportunity to define and
ultimately develop a new liquids rich gas province.
Armour Energy’s permit areas are characterised by low population densities, cooperative stakeholders and aspects of
the natural environment suited to the exploration and development of a future gas and liquids province. Armour
places considerable importance on close liaison with traditional owners and all stakeholders and this approach has led
to speedy grant of its key tenements in the Northern Territory. The Company intends to continue to invest this effort.
Armour Energy is focusing on the exploration of the McArthur, South Nicholson and Georgina Basins in the Northern
Territory and Queensland, and in the onshore Gippsland Basin in Victoria in joint venture with Lakes Oil, for gas and
associated petroleum liquids.
The Board of the Company includes four past Directors of Arrow Energy, and the same expansive approach to
exploration and development that drove Arrow’s evolution is planned for Armour Energy. The CEO Mr Philip
McNamara has been involved in the development of large coal projects, including most recently as managing Director
of Waratah Coal, where he was instrumental in securing $5.5 billion of financing for the proposed development of the
Galilee Basin coal projects. The Company’s technical team includes a range of industry experts and seasoned
professionals who have been selected to support the Board and the CEO in our goal to build Armour Energy into a
significant gas exploration and development company.
Further information regarding Armour Energy Limited, its projects, management team and a copy of its Prospectus are
available on the Company’s website at www.armourenergy.com.