Armour, Central win Queensland blocks QUEENSLAND’S latest...

Armour, Central win Queensland blocks
QUEENSLAND’S latest acreage round has seen winners in Armour Energy and Central Petroleum and rapid praise from industry groups in its efforts to keep the nation supplied.

Armour's blocks

Armour Energy and a joint venture between Central Petroleum and fertiliser maker Incitec Pivot are the preferred tenderers for the new blocks offered by the Queensland government, with Armour in its second win after late last year.

Armour has won block PLR201718-1-2 in the Surat Basin's Roma Shelf beside its existing blocks and its recently restarted Kincora gas plant, which it is aiming to move from nine terrajoules per day towards 20TJpd over the next 12-18 months
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Armour CEO Roger Cressey praised the state government's steps to increase domestic gas supply and said the new acreage would provide further resources for long term gas production plans.

"While it is still early days in terms of gas production Armour is already contributing significantly to the local region and more broadly to the east coast gas market," he said.

It is another step forward for the company to become the preeminent resource owner and producer in the Roma region.

Meanwhile Central is partnering in a 50-50 joint venture with fertiliser and industrial chemical producer Incitec Pivot, being awarded block PLR201718-1-1 to develop long term supply for Incitec's Gibson Island fertiliser facility, though gas will also supply the domestic market.

Incitec may provide up to A$20 million in funding for exploration and appraisal of the acreage, which is close to Brisbane.

"This award is designed to provide a pathway to preserving the Queensland manufacturing industry and to stimulate exploration in Queensland," Central managing director Richard Cottee said.

Australian Petroleum Production and Exploration Association Queensland director Rhys Turner was quick in his praise.

"The Queensland government recognises that the only way to put downward pressure on prices is to increase supply," he said.

Queensland Resource Council CEO Ian Macfarlane seconded the praise calling it a good outcome for the gas industry.

Earlier this week Gladstone LNG partner Santos announced a A$900 million spend planned for the state this year with $750 million going to the first year of East Roma development and an estimated 50 petajoule rise in production.

The last acreage round was announced late last year with Senex winning blocks that have since become part of its sped up Project Atlas gas project.

Central's share price rose over 10% this morning on the news and Armour's 2%, they were trading at 10.5c and 8.3c, respectively.
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