Armour receives $6 million GAP funding

Resources Minister Matt Canavan.

Resources Minister Matt Canavan.

Armour Energy Limited will receive $6 million funding under Round 1 of the Federal Government’s Gas Acceleration Program (GAP).

Minister of Resources and North Australia Matt Canavan announced Armour as one of four successful applicants to the program and said that GAP will fast track projects with the best prospect of bringing significant gas volumes to the target markets by mid-2020.

The grant will allow accelerated drilling at three production wells at the Kincora Gas Project in Queensland, which Armour estimates will allow domestic delivery of 6.9 PJ of gas by 30 June 2020.

“This is a great initiative of the Federal Government to facilitate the increase of the supply of gas to the East Coast market and this funding will allow Amour Energy to accelerate its production drilling program, which will result in earlier gas delivery from our project,” said Armour CEO Roger Cressey.

Mr Cressey went on to say that the timing of the GAP grant would be very helpful for Armour.

“At the end of December 2017, the company successfully restarted the Kincora Gas Plant and is now delivering 9TJ/d of gas to the East Coast market.

“Armour is currently performing engineering studies on the Kincora Gas Plant, and with drilling the three accelerated production wells, expects to hit its Phase 2 production target of 20 TJ/d within the next 12 months.”

Armour expects to finalise the grant funding arrangement with the Government over the coming weeks.

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