Reids Dome Production Testing Update
Brisbane, April 16, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to provide an update on production testing activities at its 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland.
Following significant rain events in March that gave rise to local flooding and made in-field roads temporarily impassable to heavy traffic, the recent dry weather allowed access to Serocold-1 where a work-over of that well was completed on 6th April.
The Serocold-1 work-over cleaned out the section below the previous pump depth and installed a liner which enabled the down-hole pump to be set 330m lower than the previous level. Early indications are positive and suggest that the deeper coals are providing increased water-flow which is generally associated with better permeability.
Work was also carried out on the Nyanda-8 well to reduce the pump size, allowing more efficient pumping as the water production declined and gas production increased.
Dewatering and gas production of the Nyanda area wells has continued following the local flooding and wet weather-related interruptions. Gas flow continues to increase with the rates of 6,000 cubic feet/day recorded at Nyanda-7, and 42,000 cubic feet/day at Nyanda-8.
As demonstrated by cores samples and image logs, natural fracturing has been encountered in the Reid's Dome Project wells, to varying degrees. The high flow rate reported at Nyanda-4 has been attributed to gas contribution from near-well fractures. In line with expectations, the free gas in those fractures appears to have been drained and the gas rate has declined back to a steady 100,000 cubic feet per day. Water production has remained steady through this period. It is expected that new fractures further from the well will open up over time due to shrinkage of the coals as the pressure reduces and gas desorption continues.
Commenting on the results, State Gas Executive Chairman, Richard Cottee, confirmed that the outcomes to date supported his excitement about the favourable geological setting for gas production at Reid's Dome.
"As articulated in my recent presentation at the Australian Minerals & Energy Investment Conference, the natural fractures in these highly gas-saturated coals will help liberate the gas and enhance production. I have been expecting that the coals between the natural fractures will cause a degree of initial compartmentalisation until those coals shrink as the gas is drained. After shrinkage, the various natural fractures should open up, extend and inter-connect over time, providing additional channels for the gas to enter the wellbore for production."
View the video presentation here:
https://www.abnnewswire.net/lnk/I1V394M5
"The results to date at Nyanda-4 appear to support this thesis. I am further encouraged, based on water-make as a proxy for enhanced permeability, by the water pumping rates for all of our wells at the Reid's Dome Project," Mr Cottee said.
"These results are all quite encouraging for long-term development of the Project," he added.
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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