Rougemont-2 Results Establish New CSG Play
Brisbane, June 9, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to announce that the Rougemont-2 test results have confirmed a new Bandanna coal seam gas (CSG) play. The Rougemont-2 well was drilled, logged and tested and has been suspended pending production testing.
Rougemont-2 intersected gas-bearing Bandanna coal measures which show strong correlation with the measures identified by coal exploration holes and historic conventional wells in the area, thereby validating the Company's hypothesis of a viable CSG play within the eastern half of the Rolleston-West (ATP 2062) Gas Project area.
Analysis of drill-stem test data confirms excellent permeability. Additionally, initial Rougemont gas analysis received yesterday indicates near-pipeline quality gas. Field values of gas content of the coals indicate the laboratory-determined numbers should exceed the threshold for commercial volumes. Final gas contents from the laboratory will be available in due course.
Executive Chairman, Richard Cottee, said that the results of the analyses indicated a high likelihood of a viable project at the Rolleston-West Gas Project.
"The results of the drill stem tests at Rougemont-2 have established the presence of excellent permeability."
"In fact the results of permeability testing in the well remind me of my early days at QGC. The permeability of the coals in the 'nose' structure at our Rougemont-2 area rivals that of QGC's legendary Undulla Nose in the Surat Basin to the south, which was first drilled in 2000."
"This comparison, together with the correlations with other well and coal exploration data across the area, gives me great confidence of an exciting new era for the Company", Mr Cottee said.
Planning for production testing of the Rougemont wells has already begun. The shallower of the two wells will be utilized for gas production testing, with facilities to be installed at the earliest opportunity to determine production metrics for both gas and water.
Concurrent planning for appraisal drilling has also commenced, with the new Rougemont data being inserted into the Company's geological model. Appraisal well locations will be selected to obtain additional critical information and maximise the potential reserves capture.
The Rolleston-West Gas Project is contiguous with the Company's 100%-owned Reid's Dome Gas Project (PL 231) and located 30 kilometres from major pipeline infrastructure interconnected with the east coast gas transmission network and the export LNG facilities at Gladstone.
At the Company's 100%-owned Reid's Dome Gas Project (PL231), the production testing continues, with the four wells showing combined gas flow in excess of 220,000 cubic feet per day.
This week, production log testing at Nyanda-4 is expected to determine how many of the coal seams in the well are contributing to the 140,000 cubic feet daily gas flow from the well. The Serocold-1 well, drilled in 2019, has also been cleaned out and is currently flowing gas at 35,000 cubic feet per day. Nyanda-8 is flowing gas at 40,000 cubic feet per day and Nyanda-7 is contributing 7,000 cubic feet of gas per day. Daily rates continue to climb as the coal seams are de-watered.
To view photographs, please visit:
https://abnnewswire.net/lnk/3HAC669F
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.
| ||
|
