Production Update - Reids Dome
Brisbane, Sep 11, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to advise that gas flow rates at its Nyanda-4 and Serocold-1 wells continue to build, with the Nyanda-4 well this morning flowing gas at 128 mscf (or 128,000 standard cubic feet) per day.
As previously advised, the Company has been investigating the potential for a significant coal seam gas (CSG) resource at its 100% owned 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, Serocold-1 and Aldinga East-1A. It is currently production testing the Nyanda-4 well in the south of the permit and Serocold-1 in the centre.
Gas production at the Serocold-1 well is also increasing. Previously advised damage to the well bore limited the depth at which the pump could be placed, resulting in approximately 46% of the targeted coal seams below the pump and unlikely contributors to this test1. The gradual increase in flow rates is encouraging and bodes well for the future. Water production at both wells remains low, providing further positive signs for future production from the Reid's Dome CSG field.
*To view images, please visit:
https://abnnewswire.net/lnk/PIB7T22P
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.
| ||
|
