Quarterly Activities Report
Brisbane, April 29, 2022 AEST (ABN Newswire) - During the March 22 Quarter State Gas Limited (
ASX:GAS) continued to progress its 100% owned Reid's Dome (PL 231) and Rolleston-West (ATP 2062) Projects towards delivery of new gas supplies into a heated east coast market.
State Gas has been conducting production testing at each of the Projects during the Quarter. This testing has provided the data necessary to determine the optimum design for development wells in each of the two projects.
At Rolleston-West, analysis of pressure data reveals that careful draw-down of water levels in the Rougemont-2 well has preserved the favourable reservoir characteristics. This data has now been compared with analogue vertical pilot production test wells. Importantly, the analogue data indicates that highly commercial gas flows can be expected from horizontal development wells: analogue horizontal wells have achieved 400,000 to 1,400,000 standard cubic feet of gas per day on long term production test.
Planning has accordingly commenced for State Gas to drill a demonstration horizontal development well at Rougemont. It is anticipated that the well will be drilled in August or September and immediately placed on production test.
Production testing at Reid's Dome has provided a variety of outcomes. The tests demonstrate the potential of the Nyanda-4 area as well as less productive areas of the field, and again, has provided the information to determine the preferred design of wells to be utilised in the development of the field. Next steps for the Reid's Dome Gas Project are currently being planned.
Financial Position
At the end of the Quarter the Company had cash at bank of $3.98m, after expending $1.88m in Project development costs and $0.20m in other costs.
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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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