Drilling Rig mobilisation to Reids Dome Gas Project
Brisbane, Dec 10, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises that the appraisal program at its 100%-owned Reid's Dome Gas Project (PL 231, or the Project) is commencing, with Silver City Drilling Rig 25 currently mobilising to site.
The Rig will drill at least four production wells on PL231 in the next phase of State Gas' exploration and appraisal program for the Project, where the Company is implementing its strategic plan to bring gas to market to meet near term forecast shortfalls in the east coast market. Centred on the highly successful Nyanda-4 well, at least four step-out wells will be drilled and production tested, providing additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for commercialisation of the Nyanda area.
During production testing in the September Quarter, the Nyanda-4 well flowed gas at highly-commercial rates approaching 500,000 scf/day, after only two months of production testing.
The first new well to be drilled will be Nyanda-7, approximately 2.6 km to the north west of the Nyanda-4 well. Spud of the well is expected next week. The Company is hoping to complete drilling of at least two wells, and commence production testing of three (including Nyanda-4), before the wet season impacts.
The Silver City Drilling Rig 25 has a strong track record at the Reid's Dome Gas Project, having previously drilled the successful Primero West-1, Nyanda-4, and Serocold-1 wells for State Gas.
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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