Restart of Production Testing at Reids Dome
Brisbane, July 20, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to announce the recommencement of production testing at the Company's 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland. Gas production testing has recommenced at both the Nyanda-4 the Serocold-1 wells.
State Gas is appraising the potential for the Reid's Dome Beds in PL231 to host a significant coal seam gas project.
Production tests of the Nyanda-4 and Serocold-1 wells in late 2019 - early 2020 produced very encouraging early results that were interrupted by pump issues in both wells. As announced on 2 June 2020, State Gas undertook an investigation of those issues and arranged for the manufacture in Canada of customised replacement pumps designed for the conditions. The pumps arrived in Australia early this month.
The new pumps have now been installed into the Serocold-1 and Nyanda-4 wells. Dewatering recommenced at Nyanda-4 on 16 July and at Serocold-1 on 18 July.
Nyanda-4 started producing measurable quantities of gas (10mscf) after only three days of pumping water. At Serocold-1 the casing pressure has increased after 1 day of pumping, a promising indication for gas production. The water levels are being drawn down slowly to maximise producibility with gas expected to flow once downhole pressures are sufficiently lowered.
Aldinga East-1A
As announced on 13 November 2019, a new conventional gas pool was discovered during the drilling of the Aldinga East-1A well. Subsequent tests of the gas sand failed to achieve gas flow, suggesting a water block (caused by the drilling fluid) has impeded flow. The Company has been monitoring a pressure build up at the well for several months and has now conducted a productivity test. This test has produced gas, indicating some dissipation of the water block and confirming the gas pool. The well will continue to be monitored for ongoing gas pressure build up and further testing will be considered.
State Gas is looking forward to announcing further positive results from Reid's Dome and will provide further updates in the near future.
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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