Production Testing Update
Brisbane, Mar 17, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to give an update on its current production testing activities at its Reid's Dome and Rolleston-West Projects in Central Queensland.
At Rolleston-West State Gas is targeting the Bandanna Formation coals, which are extensive across large areas of the permit. The potential of these areas is underpinned by Santos' commercial production of gas from the Bandannas at the Arcadia Valley field to the south-east, and Comet Ridge's progress towards commercial production from the Bandannas at Mahalo to the north-east.
Following very encouraging results from the drilling of the first two wells in the permit , the Company is now working to confirm the potential of the area for gas development by production testing to prove the producibility of the gas from the Rougemont-2 well.
Rougemont-2 pumping has demonstrated it is accessing a large drainage area that augurs well for future gas production. The well is presently flowing gas at a rate of 7,500 cubic feet / day with a pleasingly steady incline in the gas-to-water ratio. Rougemont-2 has excellent permeability at optimal depth and pressure. The Company's analysis indicates that desorption from coals commenced in mid-January and current gas production is from both desorption and gas dissolved in the water. The Company anticipates that optimal desorption will be achieved once a large area of the reservoir has been drained. Following successful pumping at Rougemont-2, it was only as recently as 15 March that all coals were exposed to the well bore.
As previously advised, at Reid's Dome (PL231) the Company is appraising the Project for early delivery of new gas supplies into the tight east coast market. Following excellent results at the Nyanda-4 well, State Gas is looking to confirm the size and scope of the development with production tests at additional wells.
Production tests were commenced in November 2021 at Nyanda-8 (a step out well, approximately 2.5km to the south-west of Nyanda-4), and Serocold-1 (in the central permit area, approximately 6km north of Nyanda-4).
Also at Reid's Dome, Nyanda-8 is presently producing at 9,000 cubic feet / day, and when requisite stabilised flow rates are reached, a Production Log Test (similar to the one conducted at Nyanda-4 in June 2021) will be conducted to ascertain which seams are contributing to the gas flows.
Serocold-1 at Reid's Dome has also given promising indications of strong gas flow.
In addition, the Nyanda-7 well (approximately 2.5km to the north of Nyanda-4) is being refitted to production test that well. The test is expected to commence in the next week.
The Company is presently reviewing its development plans to determine whether it now has sufficient gas to underwrite a pipeline connection via Rougemont to the existing Central Queensland gas trunkline, based on gas production from its Nyanda-4 discovery, combined with its conventional gas at Aldinga at Reid's Dome.
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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