Rougemont Production Testing Update
Brisbane, April 18, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to provide a further update on its production testing strategy for the Rougemont 2/3 lateral well configuration at its Rolleston West Project ("Rougemont"). The Rougemont production test to date has been highly successful:
- delivering an excellent stable economic gas flow rate (approximately half a TJ of pipeline quality gas per day), with further improvement possible as dewatering continues;
- confirming excellent permeability within the target Bandanna coal seams; and
- providing further compelling justification to relocate the CNG compression assets to support early production from Rougemont.
Having achieved the significant milestone of proving stable economic gas flow rates, it is the Company's intention to close down the well for a short period of time in order to conduct pressure build-up testing to gain a more comprehensive understanding of reservoir dynamics. Armed with this knowledge, State Gas' intention would be to re-open the well, in conjunction with relocating the CNG facilities to a location which can support both the Reid's Dome and Rougemont projects. The decision to close the well in the short term has the additional economic benefit of preserving the high-quality production testing gas until it can be captured for sale.
Executive Chairman, Richard Cottee said "Further to our previous announcements, we are excited that our assumption of extremely high gas production levels from Rougemont has been substantiated. These exceptional test results provide an excellent foundation for establishing a substantial gas reserve in the area and accelerating development of a substantial gas project in the region."
"The Rougemont nose is gradually unlocking its secrets and I have no doubt that further analysis of reservoir dynamics will enable us to further optimise production when we recommence testing over coming months. Given the uncertainty surrounding domestic gas production this discovery has come at an extremely fortunate time." Mr Cottee said.
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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