Early Success at First Rougemont Gas Well
Brisbane, May 24, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to announce that its first well in its new Rolleston-West Gas Project (ATP 2062) in Central Queensland has confirmed the existence of gas-bearing coal seams in the Bandanna coal measures within the Project area. This strengthens the Company's view that these coals will be developed synergistically with the Reid's Dome gas discoveries.
The Rougemont-1 well, spudded on 14 May, reached total target depth of 800 metres at 12.00pm on 23 May 2021. Core samples have been taken from the well, with 100% recovery. The well geology has been logged, and further testing is currently underway.
Well logs confirm the intersection of 8 metres of net coal, hosted in a number of seams, with the thickest seam measuring approximately 2.2 metres. This is consistent with nearby Bandanna Coal Seam Gas (CSG) projects such as Arcadia Valley (Santos/GLNG) and Mahalo (Santos, APLNG and Comet Ridge).
The top coal was intersected at 495 metres depth, which also correlates with the coals in the Arcadia Valley (currently in production) and Mahalo (currently under development).
Gas was observed bubbling from the coal, and field values indicate gas content is likely to be within expectations and also correlate with Arcadia Valley and Mahalo.
Executive Chairman, Richard Cottee, said that he was very pleased with these early results.
"It is always gratifying to receive positive results that justify the decision to compete for new gas acreage. These results more than justify that decision, and indicate gas contents similar to those hosted in other Bandanna coals, which led to the Company applying for this acreage", Mr Cottee said.
The Rougemont-1 well is the first of two planned wells being drilled to evaluate the highly prospective Bandanna coals in the eastern arm of the new Rolleston-West permit, which was granted to the Company by the Queensland Government late last year.
The Bandanna Formation is well established as a host of commercially viable coal seam gas, producing at the Arcadia Valley (Santos/GLNG) and under development at Mahalo (Santos/APLNG/Comet Ridge) at similar distances to the south-east and north-east, respectively, of ATP 2062.
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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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