Operational Update
Brisbane, Mar 12, 2018 AEST (ABN Newswire) - Brisbane-based conventional gas developer State Gas Limited (
ASX:GAS) is pleased to provide an operational update on its PL 231 Reid's Dome - Cattle Creek conventional gas project located South West of Rolleston in the Bowen Basin in Central Queensland.
HIGHLIGHTS
- Completed Phase 1 (Northern Area) of seismic reprocessing.
- Identified new potential gas pool target in the north-west of PL 231 from seismic reprocessing.
- Reviewed flow-test results and well inspections from December 2017 together with new seismic interpretation.
- Commenced Phase 2 (Southern Area) seismic data reprocessing.
- Commenced desktop review of Reid's Dome (deeper) gas and oil targets within PL 231.
The Company has received the results of the Phase 1 (Northern Area) seismic reprocessing. The Phase 1 reprocessing was calibrated to known gas sands from existing wells and is providing more advanced geophysical information that includes the Central North gas pool (centred on Primero-1) and other areas further to the north-west, where existing seismic data was available.
The interpretation results from the reprocessed seismic in the Northern Area of PL 231 have been considered by the Company in the context of the flow-testing results and well inspections conducted in December 2017.
With the flow-testing and well inspections data, it appears that there are two-to-three existing wells currently in place that will be sufficient to produce from the Central North Gas Pool.
The Phase 1 reprocessing also identified a new potential gas pool located in the north-west of PL 231 (North-West Gas Prospect). The North-West Gas Prospect appears to be hosted within the Cattle Creek Gas Sands and is anticipated to occur at a depth of approximately 220 metres in this area of the Permit.
Work is now underway to better define the scope of the North-West Gas Prospect and assess appropriate exploration and drilling options.
In order to optimise drilling costs and related exploration activities for the 2018 program, the Phase 2 (Southern Area) seismic reprocessing has been commissioned. Seismic data in the Southern Area is available but is more limited than that available for the Northern Area. It is anticipated that the results of Phase 2 will be available within the next three-to-four months.
The Company is now investigating options for monetising the known Cattle Creek Formation gas in the Central North gas pool centred on Primero-1.
A review of the Reid's Dome (deeper) gas and oil targets within PL 231 has also been commenced, with certain historical exploration reports recently uncovered that were previously unavailable.
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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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