REID'S DOME 2018 DRILLING PROGRAM OVERVIEW
Brisbane, Nov 7, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to present the REID'S DOME 2018 Drilling program overview:
ACTIVITY IS IMMINENT
Drilling to commence by 10 November, subject to weather
POTENTIAL NEW CSG PROVINCE
- The PL 231 area has been overlooked and never explored for CSG before
GOOD EVIDENCE FOR SUCCESS
- Conventional gas and coal seams in historical wells in Reid's Dome since 1955
THREE CHANCES OF SUCCESS FROM TWO WELLS IN LATE 2018
- Primero West-1: Shallow conventional gas target identified in seismic data
- Nyanda-4: CSG target identified from 1987 drilling results
- Nyanda-4: Known conventional gas targets within the Reid's Dome Beds
NOT LONG TO WAIT FOR RESULTS
- Drilling expected be completed by mid-December 2018, subject to weather
- Indicative results of drilling will be released to ASX
- Further testing will take three-four months for detailed analysis
EAST COAST GAS MARKET NEEDS THE GAS
- Wood Mackenzie says a "triple whammy" of high oil prices, tight LNG market conditions and a strong US dollar will put upward pressure on gas prices
- East coast gas market tightening further with the announcement of a freeze on Arrow's $400 million Tipton project expansion
- Wood Mackenzie notes that Asian LNG prices are trending towards a "netback" price in Australia of about $15 a gigajoule
To view the presentation, please visit:
http://abnnewswire.net/lnk/R9P0RP26
About State Gas Limited
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.
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 State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).
State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.
The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.
State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. 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. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.
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