Operational Update - Reids Dome Project & New Acreage Award
Brisbane, Oct 1, 2020 AEST (ABN Newswire) - Following the exceptional results of the Nyanda-4 gas production test announced last week, where gas flow rates have approached 500,000 scf/d after two months of dewatering, State Gas Limited (
ASX:GAS) is now actively planning Phase 2 of its exploration and appraisal program for its Reid's Dome Project (PL 231).
The Company is well-positioned with funding in place to commence Phase 2 drilling by mid-November this year. The Phase 2 campaign will obtain additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for early commercialisation of the Nyanda area (shown in Figure 1 below*).
Phase 2 of the program will involve drilling and production testing of at least four step out wells from Nyanda-4, with the possibility of two optional additional wells to further delineate gas resources across PL 231. A key objective is to obtain data on appropriate well spacing for field development via monitoring downhole pressures from several nearby wells producing simultaneously. The current production test at Nyanda-4 has been suspended until the new wells have been drilled so that communication with the nearby producing wells can be monitored.
Other key data from the new pilot wells to inform design and planning of processing facilities and other major infrastructure will include gas and water flow rates and composition from multiple wells over an extended period (e.g. 6 to 9 months).
While Phase 2 will focus on the Nyanda region of PL 231, gas flow rates continue to increase steadily at the Serocold-1 well, with very low water make. Damage to the well bore has limited the depth at which the pump could be placed, resulting in approximately 47% of the targeted coal seams below the pump and unlikely to contribute to this test. The Serocold-1 flow test will shortly be suspended to free up field operations to focus on the new drilling campaign.
Rolleston-West - New Gas Acreage Awarded During September 2020
State Gas is also undertaking planning for an initial gas well to be drilled within new acreage awarded to the Company in the recent Queensland Petroleum Land Release - proposed Authority to Prospect 2062, ("Rolleston-West"). The proposed well, to be named Rougemont-1, will investigate the highly-prospective and well-understood Bandanna coals in the eastern region of the acreage (shown in Figure 2 below*). The Rougemount-1 well will facilitate down-hole logging to determine coal thickness and depth of seams, along with permeability testing of seams. Subject to these results, the well may also be production tested during the Phase 2 program. The proposed Rougemount-1 will be strategically located within Rolleston-West to be close to State Gas' proposed northern route option for the export pipeline from PL 231 (Reid's Dome).
This proposed new well will be the first of several planned over the Initial Work Program for the Rolleston-West acreage, investigating both coal seam gas and conventional targets in the area.
Unified Gasfield Development
Under sole ownership by State Gas, the contiguous acreage areas (Reid's Dome and Rolleston-West) enable the co-ordination and integration of activities under a unified super-gasfield development that will provide economies of scale, efficient operations, and optionality in marketing. The Company holds Pipeline Survey Licence PSL 2049 (refer Figure 2) which includes potential pipeline routes that would conveniently service both Reid's Dome and Rolleston-West via the same corridor. Neither Reid's Dome nor Rolleston-West are restricted by domestic gas reservation requirements.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/NIP23037
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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