Central Queensland Production Testing Update
Brisbane, Feb 15, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to give an update on its current production testing activities.
Good progress is being made in its production testing of the Rougemont-2 well at the Company's Rolleston-West Project (ATP 2062) in Central Queensland, where the Company is working to confirm the potential of the area for gas development. The well, drilled mid 2021, is being gradually dewatered to ensure a controlled reduction in downhole pressures and facilitate gas flow. Gas flows commenced approximately four weeks ago and have been consistently building since, even though the water levels remain above the top of the coals (currently ~35m above). Production is expected to materially increase once the coals are fully exposed, still some several weeks away.
Sampling conducted in 2021 indicated gas of near pipeline quality at Rougement-2.
At its Reid's Dome Project (PL 231), State Gas is production testing two wells, Nyanda-8 and Serocold-1, as it looks to confirm the commerciality of the Project for delivery of new gas supplies into the east coast market.
The Nyanda-8 well continues to consistently produce gas with small but steady increases daily. The consistency of the well is encouraging, suggesting that skin damage caused to the formation may be slowly resolving.
The Company has recently completed a workover of Serocold-1 and returned the well to production. The water level is currently just above the coals, and gas flows are expected to commence over the next few days.
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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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