Resource Estimates and Final Rougemont Well Results
Brisbane, Aug 27, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) has received gas content and final composition results for the recently drilled Rougemont-1 and Rougemont-2 wells in its 100% owned Rolleston-West Project (ATP 2062), enabling an estimate of contingent gas resources for the eastern area of the andanna coal measures within ATP 2062.
Highlights
- Exceptional permeability of 395mD in primary Rougemont-2 seam.
- Gas content for the two primary seams in the Rougemont-1 and Rougemont-2 wells is a highly commercial 5.15 to 6.20 m3 /tonne dry ash free.
- The gas in the relevant seams in both wells is more than 96% methane - pipeline quality once dehydrated.
- Production testing of Rougemont-2 well to commence shortly.
- Contingent Resources estimated for the East Bandanna Fairway within 100%-owned Rolleston-West Project (ATP 2062) of 53 PJ 1C, 91 PJ 2C, 161 PJ 3C.
- Contingent Resources for the 100%-owned Reid's Dome Project (PL 231) also estimated at 74 PJ 1C, 126 PJ 2C, 223 PJ 3C.
These latest results follow on from the exceptional permeability results received for the Rougemont-2 well, where the primary seams, one 2.8m thick, the other 2.4m, were found to have permeability of an outstanding 395mD, and very sound 25mD, respectively. These results, determined by drill stem testing following drilling, are extremely promising for production, suggesting early and comprehensive drainage of the gas in the seams.
The Rougemont-1 and -2 wells, the first wells in ATP 2062 awarded to the Company last October, were drilled to investigate the potential of the eastern area of the permit for a coal seam gas (CSG) project. The wells, approximately 2.7km apart, targeted the Bandanna coal measures, a well established gas bearing formation producing commercially at nearby Arcadia Valley (operated by Santos) and being prepared for commercial development at Mahalo (operated by APLNG).
The Rougemont-1 and -2 wells were drilled as coreholes, with samples of the coals sent for laboratory analysis of gas content and composition. The wells were also logged to identify coal thickness, and permeability tested.
Data from the wells indicated strong correlation between the wells, with laterally continuous coal seams of approximately 8 metres net coal across the area.
The laboratory analysis of the coal samples has indicated good gas contents in the coals. The primary seams in Rougemont-2 were measured as 6.00 and 5.15 m3 / tonne dry ash free, while the correlative seams in the deeper Rougemont-1 were 6.20 and 6.18 m3 / tonne dry ash free.
These results more than justify production testing and planning is well underway for a test at the Rougemont-2 well.
The final gas composition results are also a significant boost for the commerciality of the Project: the gas from both wells was in excess of 96% methane. Once dehydrated, the gas from this area will be of pipeline quality, which will enable processing costs to be kept to a minimum.
The receipt of the gas content results has enabled an estimate of the contingent gas resource in the east Bandanna fairway within the permit (indicative area shown in pale yellow on the map in Figure 1 below*). The estimated Contingent Resources are set out in Table 1*. These resources relate to the coal seam gas in the eastern area of the permit only, and do not include the conventional gas prospects in the permit, or the unexplored areas to the west of the Rougemont East Bandanna CSG Fairway. These areas are expected to add to the resources position of the Company when assessed.
Reid's Dome
The Company has also obtained an estimate of the contingent resources in its Reid's Dome Project, PL231. The estimated Contingent Resources are set out in Table 2*.
Executive Chairman, Richard Cottee, stated that these latest results from the Rougemont wells were unambiguously good news.
"We already knew we had good coal thickness and absolutely outstanding permeability at Rougemont-2. Now, with these gas content numbers, we have every expectation that the area will support a very commercial project," he said.
"This is particularly so with the gas composition: this is pipeline quality gas, just needing dehydration and compression to enter the network - the least processing possible," he added.
"I am very much looking forward to production testing Rougemont-2, and, in due time, a highly commercial project from the East Bandanna Fairway", he said.
He also commented on the new Resource estimates for the projects. "I am also very pleased with the Contingent Resource estimates received for both Reid's Dome and Rolleston-West. I have always had confidence in the 'size of the prize' at these Projects, and now see my confidence confirmed".
"These volumes gas will provide a very much needed supply boost into the east coast gas market, which, as the ACCC has identified, is facing the prospect of real shortages."
"With nearly 400PJs of Contingent Resource in contiguous projects so close to the transmission pipeline network, State Gas is very well placed to leverage the looming national gas shortage."
The Rolleston-West Gas Project is contiguous with the Company's Reid's Dome Gas Project and located 30 kilometres from major pipeline infrastructure interconnected with the east coast gas transmission network and the export LNG facilities at Gladstone. Neither the Rolleston-West or Reid's Dome Gas Projects are subject to domestic gas reservation restrictions.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/009D08IW
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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