Success at Second Rougemont Gas Well
Brisbane, June 7, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to announce that its second Rolleston-West well, Rougemont-2, has intersected gas-bearing Bandanna coal measures very similar to the coals identified during drilling last month at its Rougemont-1 well in Central Queensland.
The strong correlation of the results of Rougemont-1 and 2 validate the Company's hypothesis that the extensive Bandanna Formation within the Rolleston-West Gas Project (ATP 2062) hosts significant volumes of gas.
The Rougemont-2 well, approximately 2.7km north west of Rougemont-1, was spudded on 29 May and reached total target depth of 540 metres at 8.00am on 5 June 2021. As at the Rougemont-1 well, core samples have been taken from the well, the well geology has been logged, and further testing is currently underway.
Both Rougemont wells intersected approximately 8 metres of net coal, hosted in a number of seams with the thickest seams in excess of 2 metres (2.8m at Rougemont-2 and 2.2m at Rougemont-1). The coal measures in Rougemont-2 were encountered at approximately 295 metres depth (i.e. approximately 200 metres shallower than at Rougemont-1).
Gas was observed bubbling from the coal samples taken from both wells, and field values for the gas content of the coals from both are similar. While final gas contents will be determined by laboratory analysis in due course, the field values suggest the gas content is likely to be within expectations for a commercial development. The visual appearance of the coals from each is also similar.
These similarities between the results from the wells so far suggest good consistency across the Bandanna coal measures at a range of depths. The Bandanna coal measures are extensive throughout this eastern arm of the Rolleston-West Gas Project, and correlate with the Bandanna coals at the Arcadia Valley Coal Seam Gas project (Santos/GLNG) and under development at Mahalo (Santos/APLNG/Comet Ridge).
Executive Chairman, Richard Cottee, said that he was very encouraged by the results so far and their consistency.
"These results suggest good consistency across the extensive Bandanna coal measures in this region of the Rolleston-West Project."
"Assuming further positive results from the wells, a gas project of significant scale may be possible in this area, to complement our neighbouring project at Reid's Dome," Mr Cottee said.
The Rolleston-West Gas Project is contiguous with the Company's Reid's Dome Gas Project and is located 30 kilometres from major pipeline infrastructure interconnected with the east coast gas transmission network and the export LNG facilities at Gladstone.
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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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