Spud of First Well in Production Well Campaign
Brisbane, Dec 15, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to advise that the Nyanda-7 well, the first well in its Phase 2 exploration and appraisal program for the Reid's Dome Gas Project (PL 231), spudded at 9 am this morning, 15 December 2020.
The Nyanda-7 well is part of State Gas' 100% owned Reid's Dome Gas Project on PL231, located in the Bowen Basin in Central Queensland. State Gas' Phase 2 exploration and appraisal program is being undertaken to implement the Company's strategic plan to bring gas to market to meet near term forecast shortfalls in the east coast market. Focused on the area around the highly successful Nyanda-4 well, the program has been designed to provide additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for commercialisation of gas in the Reid's Dome Coal Beds in the area.
Approximately 2.6 km north of the Nyanda-4 well, the Nyanda-7 well is being drilled as a step out well to Nyanda-4, from which gas was produced at rates approaching 500,000 cubic feet per day. The Company plans to log the new well once it reaches total depth (planned at 1200m), and subsequently commence production testing.
Nyanda-7 will be followed by at least three further production wells on PL231, with timing of the further wells dependent on weather. 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.
State Gas is also planning the drilling of two coreholes at its new Rolleston-West Project (ATP 2062) to commence in the New Year. These wells will investigate the gas potential of the highly prospective Bandanna Coals in the eastern region of the 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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