Reids Dome Production Testing Update
Brisbane, Feb 18, 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 continues strongly at the Nyanda-4 well. Growth in the production rate shows good consistency with prior testing of the well. Current rates are around 100,000 cubic feet a day, which is ahead of previous comparable production tests at Nyanda-4 based on the dewatering timeframe.
Dewatering of the new Nyanda-7 and Nyanda-8 wells continues steadily, to avoid "shocking" the coals and damage to the formation. The water level has now been lowered below the top of the coals in both wells and both exhibit indications of gas flow. Both wells show good recharge, a most promising sign for permeability, and interestingly, the recharge has increased when water levels have dropped below natural fractures in the coals that were identified on image logs. The increases in water flow indicates the natural fractures provide increased permeability, and hence improved potential gas production volumes from the well.
Planning is also underway for drilling at the Company's new Rolleston West permit (ATP 2062), located to the north-west of the Nyanda area at PL 231.
State Gas will continue to update the market as production testing continues and as drilling activities progress.
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.
| ||
|
