Production Update - Reids Dome
Brisbane, Aug 26, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises that production testing of the Reid's Dome Beds at its 100%-owned PL231 project is continuing, with the gathering of additional data to support pipeline development, planning and gas production.
As previously advised, the Company has been investigating the potential for a significant coal seam gas (CSG) resource at the Reid's Dome Gas Project (PL231), undertaking Phase 1 of an exploration and appraisal programme to confirm the widespread presence of CSG across PL231. The successful Phase 1 confirmed significant coal seam gas across more than 12 kilometres within PL 231 through drilling and testing of three wells (Nyanda-4, Aldinga East-1A and Serocold-1).
The latest data from the current testing indicates increased growth in gas production at the Nyanda-4 well, with each day's production rate above 3% more than the day prior. As of this morning gas was being produced at the rate of 89 mscf/d, boding well for longer term commercial production. Water flows continue to register at very low levels.
Gas production at the Serocold-1 well in the centre of the permit also continues to build. Although nearly half (46%) of the targeted coals are below the level of the pump (well damage limiting the depth the pump can be placed at), recent results indicate that some lower seams are producing gas. These indications of gas flow from seams below the pump level are supported by the results of permeability testing undertaken during drilling, which suggested deep seams would contribute to gas production in the Serocold-1 well. The limitations of the current production test, where these deeper seams cannot be fully exposed, will prevent the true potential of these lower seams from being tested. Despite these constraints, the early signs for gas production from both shallow and deeper coal seams at PL231 are very encouraging for wells optimised for production in the future.
As previously announced, the Company has commissioned Netherland Sewell & Associates to undertake certification of the gas resource at the Project. The certification results are expected to be available for release by late September 2020.
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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