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Well Has Penetrated a Continuous Section of Oil-Bearing Barney Creek Shale Source Rock

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Core prompt: Well has penetrated a continuous section of oil-bearing Barney Creek Shale source rock. Oil bearing Barney Creek Shale intersected from 260 metres to

Well has penetrated a continuous section of oil-bearing Barney Creek Shale source rock.

Oil bearing Barney Creek Shale intersected from 260 metres to 780 metres.

Results indicate oil window exists to a depth of 780 meters which is deeper than previously assessed.

The Directors of Armour Energy are pleased to provide the following update on the Lamont Pass 3 vertical exploration well being drilled in the Company’s 100% owned EP 190 in the Northern Territory.

Update on oil and gas shows

The well continues to encounter bitumen, blooming, milky and streaming oil cuts and live oil in the Barney Creek Shale source rock.  First gas and minor golden yellow oil florescence have been encountered at 260 meters with significant connection gases also reported.  Chips from core samples placed into nipple dishes from various depths and treated with with chlorothane (which draws out oil) clearly display the existence of hydrocarbons under florescence.  Refer to Figures 3 to 7 in full announcement (click link below).

The well has penetrated a continuous section of oil-bearing Barney Creek Shale from 260 meters to 780 meters.  Core barrels with hydrocarbon odour have been retrieved, connection and background gases have been observed with associated live oil in fractures, interbedded dolomites and consistent oil cuts from the Barney Creek Shale source rock.

Oil window is more extensive than previously assessed

The common occurrence of live oil and cut substantiates extending the oil window previously assessed by MBA Petroleum Consultants (“MBA”) (See Figure 1 in full announcement).

Lamont Pass 3 is located in the recently granted EP 190 tenement which was not part of MBA’s assessment and covers an area of 12,818 km².

 
 
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