Operational Update
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:GASState Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome Gas Project (PL-231), originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is Sole Operator and 80% owner of the Reid's Dome Gas Project which is located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline. http://www.stategas.com

 


Contact

Lucy Snelling
Chief Executive Officer
M: +61-439-608-241
E: lucy@stategas.com

Greg Baynton
Executive Director
State Gas Limited
M: +61-414-970-566
E: greg@stategas.com



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