Nyanda 7 Evaluation Update
Brisbane, Dec 24, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to advise that further evaluation of the Nyanda 7 coal seam gas well logs indicates 38.2 m net coal using parameters determined from Nyanda 4 core and desorption data.
Located approximately 2.6km north of the successful Nyanda 4 well at the Reid's Dome Gas Project, the Nyanda 7 well reached its total depth of 1,210m on 19 December 2020.
The net coal and seam thicknesses and good quality gas shows between 486 - 1210m in the Reid's Dome Beds coal measures are similar to those encountered in Nyanda 4. Borehole image data indicates numerous open natural fractures intersecting the coal seams in Nyanda 7. Fractures such as these are commonly associated with favourable gas flow rates. During testing at Nyanda 4 in September this year, coal seam gas was produced at rates approaching 500,000 cubic feet per day.
The Nyanda 7 well has had pre-perforated production liner and casing installed and the casing cemented to surface. The well has been suspended awaiting completion.
Mobilisation of the drilling rig to the Nyanda 8 well location commenced on 24th December with Nyanda 8 expected to spud in the next few days, weather permitting.
The Completion/Workover Rig is now on site and after the Christmas break, pumps will be installed at both Nyanda 7 and 8, and the Nyanda 4 pump will be serviced.
Production testing will commence as soon as possible in the new year.
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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