Armour Energy Limited has exercised a right to farmin to Petroleum Retention Lease 2 (PRL2) in onshore Gippsland Basin, Victoria, Australia held by Lakes Oil NL. The farmin agreement will give Armour Energy the right to obtain up to a 50 percent working interest in the highly prospective PRL2 as part of a two stage farmin program.
Armour Energy may withdraw from the agreement without cost. PRL2, located in the onshore Gippsland Basin in Victoria, is considered prospective for both tight and conventional gas accumulations and is in close proximity to existing infrastructure and markets. PRL2 covers several tight conventional reservoirs in the Strzelecki Formation of the Gippsland Basin, onshore in Victoria.