Armada Oil announces initial results of Gulf Coast production enhancement program

7/10/2013

Armada Oil announces initial results of Gulf Coast production enhancement program

DALLAS -- Armada Oil announced today that it has met and exceeded its earlier estimate of up to a 20% increase in production through a recently completed a series of workovers and stimulation efforts on three wells in the Lake Hermitage Field (100% WI) in Plaquemines Parish, La. The workovers are part of the company’s low-cost, aggressive production enhancement program, announced May 9, 2013. The results to date include production increases from Armada’s LLDSB #2, LLDSB #3 and LLDSB #20 wells.

The LLDSB #2 well, which had not had continuous production since 2010, was successfully re-perforated and stimulated in the P1 Sand at approximately 9,600 ft. The well tested at a rate of 68 bopd and 233 mcfd.

The LLDSB #3 well was successfully re-perforated in the Upper UL-4 Sand at approximately 12,300 ft, to increase flow. The well tested at a rate of 86 bopd and 88 mcfd, a significant improvement over the prior rate.

The LLDSB #20 well, which had been off-line since August 2012 due to flowline and water lifting issues, was successfully re-perforated in the UL-1 Sand at approximately 10,055 ft. The well flowed at a rate of 12 bopd and 541 mcfd at a stabilized flowing tubing pressure of 600 psi. The company said its technical team believes that the increase in pressures, as a result of this operation ,will alleviate the lifting issues and allow for consistent production from this well.

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