State Gas to drill new horizontal well
Brisbane, Sep 12, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to announce that the rig and associated equipment has commenced mobilising to site to drill its new horizontal well Rougemont-3.
Located approximately 1.4 km from the Rougemont-2 well, Rougemont-3 will drill two laterals horizontally to intersect with the Rougemont-2 vertical well. The laterals, starting at approximately 290 m true vertical depth and 320 m true vertical depth respectively, will cut through the two primary coal seams identified in the Rougemont-2 well. The target total in-seam length is approximately 2 km.
The Rougemont-2 well intersected ~9m of net coal, with two primary seams of 2.8 m and 2.4 m respectively. Drill stem testing of the seams indicated excellent permeability (395 mD) in the upper of these two seams and a more moderate, but still very promising 26 mD in the lower seam. At more than 94 % methane the gas in the seams is very close to pipeline quality. Gas contents at more than 5.4 m3/t were also promising.
Silver City Drilling Rig 20 is currently mobilising to the Rougemont-3 site, with spud of the well expected in the coming week.
Also mobilising is a Secure Well Services workover rig which will replace the current completion in Rougemont-2 with a ranging tool. The ranging tool will link to the lateral well direction finding equipment to ensure the laterals meet the vertical wells as intended.
Once the laterals are complete the workover rig will return and replace the pump in Rougemont-2. Production testing of the two wells, as an integrated well pair directly accessing more than 2 km of the reservoir, will then commence.
State Gas Executive Chairman Richard Cottee noted the significance of the well: "The Rougemont-3 well will be an important test of the productivity of the Rougemont area."
"The country, and indeed the world, is in dire need of gas, and this Rougemont gas is of excellent quality", he said.
"I am hopeful that this well and the subsequent production test will indicate that the area has the potential to provide new gas supplies to help meet the urgent demand."
*To view the Rougemont-3 laterals, please visit:
https://abnnewswire.net/lnk/U1Q100VC
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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