Promising Early Gas Shows
Brisbane, Dec 17, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises that the three production test wells continue to provide encouraging results after early testing.
Following highly successful production testing of the Nyanda-4 well earlier this year, State Gas undertook jetting at the nearby Nyanda-8 well last month. After 20 days on production test, the well is averaging 16 bwpd and has a steady flare at 36% drawdown. The Nyanda-8 production test was commenced on 28 November 2021
The Serocold-1 production test is part of the Company's program of work to confirm the commerciality of its Reid's Dome Project (PL 231) in Central Queensland for delivery of new gas supplies into the east coast market. State Gas performed a foam squeeze on the well last month in order to control the unwanted production of silt and sand. After 14 days on production test the well is averaging 55 bwpd and has an intermittent flare of gas at only 25% drawdown.
The production testing at Rougemont-2 has yielded encouragement with gas production at 8 mcfd and water production at 36 bwpd after 32 days with the well at 43% drawdown.
The Rougemont-1 and -2 wells are the first wells drilled in the eastern area of ATP 2062, which was issued to the Company in October 2020. The wells targeted the Bandanna Formation coals - currently in commercial production to the south-east at the Santos operated Arcadia Valley project and under development at the Comet Ridge operated Mahalo project to the north-east. The drilling results confirmed the presence of good quantities of gas at or near pipeline quality and the current test to is to confirm its producibility.
Water levels are being monitored and drawn down carefully to control the reduction in downhole pressures to optimise production. The early gas flows were unexpected.
"I am pleased that we are successfully producing from these wells in a controlled fashion, and the early gas production has been both unexpected and fortuitous", said the Company's Executive Chairman Richard Cottee.
"Remote control of the production via SCADA means we are now much less vulnerable to weather instability at this season of the year", he added.
"The Reid's Dome gas contents are high - an average of 13.75 m3/tonne at Nyanda-4, so I am looking forward to seeing the results of these new production tests", said Mr. Cottee.
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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