Quarterly Activities Report
Brisbane, Jan 31, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (State Gas or the Company) is owner and operator of the Reid's Dome Gas Project (PL 231) in central eastern Queensland, approximately 545 km northwest of Brisbane and 50 km southwest of Rolleston, in the Bowen Basin Central Queensland. The permit hosts both conventional and unconventional gas and is less than 50 km from the high pressure gas pipeline network in Queensland (see Figure-1*).
HIGHLIGHTS:
- Significant steps taken to advance the Company's Target 2021 gas-to-market strategy for the Reid's Dome Project with drilling and commencement of production testing.
- In the southern area of PL 231, encouraging Nyanda-4 production testing results received with early commencement of gas flows, and recorded gas rates of 227 mscf/d (expected to increase with further dewatering).
- Coal seam gas potential also confirmed in northern and central areas of permit with positive results from drilling new Aldinga East-1A and Serocold-1 wells.
- New conventional gas pool also discovered at Aldinga East-1A (northern PL 231).
- Commencement of activities to production test Serocold-1 well (central PL 231).
In late 2018 State Gas drilled the first coal seam gas well in the region into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231.
In August 2018 Pipeline Survey Licence 2028 was issued to the Company, enabling investigations to commence for a pipeline route to market. Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to the drilling program undertaken in November-December 2019.
During the previous Quarter State Gas adopted "Target 2021", a strategy to bring gas to market from PL 231 to meet forecast shortfalls in the east coast domestic gas market as early as 2021.
Outlined in its announcement of 21 August 2019 and presentations dated 8 and 22 October 2019, the strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market.
PROJECT ACTIVITIES
The December 2019 Quarter has been a period during which the Company has significantly advanced its Target 2021 gas-to-market strategy. Having established the potential for a significant coal seam gas project in PL 231 with the 2018 drilling of Nyanda-4, the Company is now appraising that potential with drilling and the commencement of production testing during the Quarter.
The Nyanda-4 corehole provided a suite of data about the southern area of the permit which has been extended during the Quarter with promising results from production testing. In addition, the Company drilled the Aldinga East-1A corehole approximately 12km to the north of Nyanda-4 and the Serocold-1 well approximately half way between these wells (see Figure 1*), to provide data about the nature and extent of the coals across the permit.
*To view the quarterly report, please visit:
https://abnnewswire.net/lnk/7GLD5O02
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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