Operational Update Reids Dome Gas Project
Brisbane, Feb 12, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) refers to previous announcements in relation to recent activities at the Reid's Dome Gas Project (PL 231), including on 31 January 2020. The Company is pleased to provide an update on production testing of the first three Coal Seam Gas (CSG) wells at Reid's Dome, drilled by State Gas.
Aldinga-1A
While production testing has not yet commenced at Aldinga East-1A (drilled in October 2019) a very encouraging build up of pressure has been observed in the well. Following the discovery during drilling of a new conventional gas pool in the Cattle Creek Formation, the Company returned to Aldinga East-1A in January to remove drilling fluid from the well. Since then the Company has observed a build up in pressure at the wellhead, suggesting gas may have commenced flowing from the Formation.
The Company is continuing to monitor the well and will consider options for further testing in the coming months.
Nyanda-4
As previously advised, the Company commenced production testing at Nyanda-4 on 4 December.
Gas flows were noticed within the first week of pumping at Nyanda-4 and were recorded at 227 mscf/d after six weeks of dewatering, prior to technical issues interrupting depressurisation of the well. Although pumping has temporarily ceased, gas production is continuing at Nyanda-4.
Serocold-1
The Serocold-1 test commenced on 17 January 2020 and quickly provided indications of gas production within the first week of dewatering commencing. More recently, technical issues have been encountered during pumping, delaying ongoing dewatering at Serocold-1 until new equipment can be installed.
From the early indications, the Company is confident that the Serocold-1 well will successfully produce CSG.
While heavy rainfall at site over the past two weeks is preventing access, the Company has undertaken troubleshooting and believes it has identified production solutions for both Nyanda-4 and Serocold-1 wells.
With further rain forecast in the region, the Company is currently prioritising the options for recommencement of dewatering as soon access conditions permit.
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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