Operational Update - Reids Dome Progress
Brisbane, Nov 7, 2019 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) ("State Gas" or "the Company") refers to its previous announcements1 relating to the spudding, commencement of coring, and encountering of conventional gas at the Aldinga East-1A well in the Reid's Dome Gas Project (PL 231).
The Company is pleased to advise that it has suspended drilling of the Aldinga East-1A well at the depth of 882m to enable wireline logging and permeability testing after encountering both coal seam gas and conventional gas in the well. Wireline testing services provider, Weatherford International, has mobilised to site and are commencing logging activities this morning. The results of the wireline logging will be used to identify coal seams and gas sands intersected in the well, including the most productive gas zones.
Approximately 12 kilometres to the south within PL 231, the Company has also been planning the re-entry and production-testing of suspended Nyanda-4. The production testing will provide important information for early commercialisation of the project and follows drilling success in late 2018 and excellent final gas content results from core samples from Nyanda-4 announced earlier this week. As advised, the average of the measured gas content from the coal desorption testing was 13.75 m3/t (among the highest for CSG projects), with 16.94 m3/t recorded for the thickest cored seam. The highest value obtained was 17.16 m3/t and the lowest value was 8.30 m3/t.
Accordingly, State Gas has engaged TDC Drilling Pty Ltd to undertake the current Nyanda-4 activities and mobilisation of TDC's Rig 4 to Nyanda-4 has commenced. TDC is expected to commence re-entry of Nyanda-4 next week, prior to completing the well for production testing.
State Gas is mindful of the impending wet season and is progressing field activities with a view to completing the 2019 program as early as practicable to minimise disruption from adverse weather.
Further updates will be provided during the current program as drilling and testing milestones are achieved and results become available.
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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