Rougemont-3 Well Completed
Brisbane, Oct 24, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) advises that it has completed the drilling of the Rougemont-3 dual lateral well, with the rig released on Saturday.
The second lateral in the well has been successfully drilled to intersect the Rougemont-2 vertical well. It has now been lined to facilitate production.
The lateral achieved 97% within the target coal seam, resulting in 1130m exposure to the reservoir. Together the two laterals provide direct access to ~ 2400m of coals.
Gas shows (99% methane) in drilling fluid during drilling of the second lateral averaged a very promising 15 - 19%, indicating the coals are gas saturated. The average over both laterals was ~20%, boding well for gas production once testing starts.
Testing of the combined Rougemont-2 and -3 well pair will commence once Rougemont-2 has been recompleted and a new pump installed. This is expected in the next few weeks, subject to weather conditions.
Testing will commence with the water level in the wells being drawn down slowly to optimise production. Initial gas flows are expected to commence within the next 2-3 months.
The Rougemont-3 horizontal well is being drilled to confirm the gas production potential of the Rougemont area within State Gas' 100%-owned Rolleston-West Project (ATP 2062) and to provide gas for a future pipeline to connect the project area with the east coast gas pipeline network.
The well targets the coals of the Bandanna Formation, in commercial production at the Arcadia Valley to the south-east.
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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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