Reids Dome Production Testing Update
Brisbane, Feb 11, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to provide its weekly update on production testing activities at its 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland.
As advised on 27 January 2021, State Gas is undertaking production testing of three coal seam gas (CSG) wells in the Nyanda area at Reid's Dome (refer Figure 1*) in order to appraise that area for early development.
Gas production at the Nyanda-4 well continues to build. As at 6am today (approximately three weeks after the well was recommissioned) the well was producing at the rate of 100,000 cubic feet a day, and rising. This rate is materially higher than the rates achieved at similar stages in prior testing (boosted by work the Company has done on the well). It is also an important milestone in achieving commercial viability for a CSG well.
Dewatering of the Nyanda-7 well commenced two weeks ago. The well has shown good recharge (a promising sign for permeability) and with the Company adopting a cautious approach to dewatering, the water level in the well is just now approaching the top of the coal seams. Gas production is expected to become measurable shortly after the level drops below the coals.
With dewatering also underway at Nyanda-8, the water level in that well has just dropped below the top coal seam, and gas produced from the well has now become measurable and is continuing to rise. Currently, the well is producing approximately 5,000 cubic feet of gas per day. The water level will continue to be lowered over the next few weeks.
State Gas will continue to update the market as production testing continues.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/Z8HZ2T28
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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