Gas flow-rates at 358k scft/day triggers a strategy review
Brisbane, Mar 14, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to advise that production testing gas from the Rougemont2/3 lateral well ("Rougemont") is flowing at a rate that is approaching being unquestionably economic.
It is producing in excess of 350,000 scft/day with the flowrate increasing at between 15-20,000 scft/day (see Figure 1* below), despite the top coals of the Bandanna coal measures remaining underwater. If Rougemont gas production continues to increase at this rate it would justify temporarily relocating the relocatable CNG project compression assets from Reid's Dome to Rougemont.
The advantages of such a move would be that the company would produce a positive cashflow from otherwise flared gas whilst preserving the conventional gas at Reid's Dome as a quick response to what should be an increasingly volatile domestic gas market following the closure of the Liddell coal fired power station in April. Whilst such a move may cause a slight delay in the commencement of the CNG project, its gas would still be available for the winter electricity needs following the Liddell closure.
The early success of the Rougemont Production Test means the company is evaluating the quickest method by which it can get reserves declared at Rougemont to underwrite the financing of an approximately 20 km pipeline to a connection on the Wallumbilla to Gladstone Pipelines.
The options for a quick reserve certification range from a three to five well pilot scheme to pressure monitoring wells or a combination of both. A decision on the precise next steps to be undertaken this dry season will be made after discussions with the reserve certifier this month.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/93092842
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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