Rougemont Production Testing Update Coals Begin Unloading
Brisbane, Feb 16, 2023 AEST (ABN Newswire) - After several months of careful draw-down to reduce water levels in the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"), State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to advise that the pilot is beginning to show early signs of the coals unloading their gas.
As of 14 February 2023, gas flow rates have exceeded 50,000 cubic feet per day and are steadily increasing despite water levels being still 170 metres above the uppermost coal seam. Coincident with reaching desorption pressure, the well commenced surging both gas and water, indicating good permeability and strong drive. It is anticipated that, as further water is removed from the well and drained from the coal cleats, gas rates will continue to climb.
Executive Chairman, Richard Cottee advised that the strong early gas flows at this stage of dewatering were an early sign of the success of the lateral well technique at Rougemont 2/3.
"The fact that we are already getting 50,000 standard cubic feet per day flow rates when the coal is still 170 metres underwater is extremely pleasing" said Richard Cottee, Executive Chairman.
"I can't wait to see the flow rates when the water level falls below the coals and gas is more freely liberated", Mr Cottee said.
The Company will keep the market informed of continued progress with production testing results from Rougemont and is now evaluating the location for further step-out wells to support an initial resource estimate for the project.
Accelerating the delivery of pipeline quality gas from Rougemont is a critical part of the Company's strategy to supply the tightening eastern seaboard gas market. Production from Rougemont could be additional to that included in the ACCC's long term supply analysis. Gas from the Company's permits is not restricted by domestic gas reservation requirements, and therefore, has the flexibility of being sold to either local customers or export markets.
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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