Operational Update
Brisbane, June 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
- Drilling planned for Qtr 3 2018 to test gas target in the north-west of PL 231 identified from seismic reprocessing.
- Phase 2 (Southern Area) seismic data reprocessing expected to be completed during Qtr 3 2018.
As previously announced, the Phase 1 (Northern Area) seismic reprocessing undertaken by the Company 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 appears to consist of multiple zones to a depth of approximately 500 metres.
The Company is currently preparing to undertake drilling to test the North-West Gas Prospect. Reid's Dome North-West-1 will be drilled into the target zones. If gas is detected, the well will be logged and tested to provide information on the flow and permeability characteristics of the formation. The drilling of this well will complete the Company's sole funding obligations under the Joint Operating Agreement for PL 231.
Drilling is expected to be undertaken during the 3rd Quarter of 2018.
The Phase 2 (Southern Area) reprocessing of historic seismic in the Southern Area of the permit is also expected to be completed in the 3rd Quarter of 2018. Seismic data in the Southern Area is more limited than that available for the Northern Area.
In addition, the Company is continuing its investigation of options to monetise the gas identified in the Cattle Creek Formation in the Central North gas pool centred around Primero-1, as well as any new gas located in the North-West Prospect.
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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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