The directors of Armour Energy Limited (ASX: AJQ) on May 25 reported that its first well in the MacArthur Basin (Australia) has encountered gas 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.

Cow Lagoon 1 (100% Armour Energy 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 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.