Armour Energy (ASX:AJQ) has started to continuously flow gas...

Armour Energy (ASX:AJQ) has started to continuously flow gas from its Egilabria-2 well in northwest Queensland during the flowback recovery process.

Continuous flow is being observed with intermittent flaring though the company has yet to measure the flow rate.

The results are encouraging and highlight the potential for economic gas flows from successfully stimulated gas wells in the Lawn Shale.

It expects to begin flowing gas through the separator in order to measure a stabilised flow rate by the end of the coming week, which is then expected to further increase as more stimulation fluids are recovered.

Pressure at the surface has increased to 630psi over a 7 day period whilst the Company is pumping fluid through the tubing.

To date 57% of the original 11,400 barrels of stimulation fluids that were originally pumped into the well have been flowed back.

This is an increase of 12% since the flowback was recommenced earlier this month.

Flowback fluid samples have been taken and are currently being analysed.

Egilabria-2 was drilled to target the Lawn Shale, which is present at a depth of 1,583 metres, is 137 metres thick and has a total organic content of 8%

The Lawn Shale holds mean prospective recoverable gas resources of 22.5 trillion cubic feet of gas and 242 million barrels of oil equivalent of liquids, as assessed by MBA Petroleum Consultants in 2012.