State Gas Limited Stock Market Press Releases and Company Profile
Reid's Dome Drilling Program and Analysis Outcomes
Reid's Dome Drilling Program and Analysis Outcomes

Brisbane, Jan 21, 2019 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) provides the Company's latest presentation.

Highlights: REID'S DOME UNLOCKED

PRODUCTION LEASE & PIPELINE SURVEY LICENCE

- PL-231 is located in central Queensland, granted under the 1923 Act over 181 km2 on the elongated apex of the Springsure-Sericold anticline for a 30 year term from 15/12/2005. Pipeline Survey Licence PSL-2028 was granted for a 2 year term from 01/08/2018

OWNERSHIP

- State Gas is Operator with 80% of PL-231 - transitioning to 100% under the terms of the Joint Operating Agreement (Offer/Acceptance Notices for remaining 20% issued December 2018)

PROVEN GAS FLOWS

- 17 wells drilled between 1955 - 2018. Gas flows both from sandstone reservoirs in the Cattle Creek Formation and Reid's Dome Beds

NEW PROVINCE - LARGE CSG PROJECT

- Permian Reid's Dome Beds coal measures are extensive throughout the entire PL-231

CSG CONFIRMED IN 2018 DRILLING

- Nyanda-4 (2018) was the first CSG well drilled in Reid's Dome/PL 231

- Nyanda-4 allowed first modern suite of core and logs over Reid's Dome Beds

CONVENTIONAL/ TIGHT GAS

- Cattle Creek Formation: 3-way dip closed structural and stratigraphic traps, over-pressured. Primero West-1 discovery in November 2018

- Reid's Dome Beds: ~1500m thick section with multiple prospective, overpressured sandstone reservoirs in an anticlinal setting. Regional conventional gas analogues nearby at APLNG's Westgrove/Merivale gas fields

SIGNIFICANT CSG PROJECT CONFIRMED IN REID'S DOME BEDS

- CSG confirmed in 40.4m of net coal and 25m of carbonaceous shale + conventional/tight gas in sands and shales of Reid's Dome Beds. Desorption ongoing, average gas content to date of 11.6m3/t in cored coal seams from 392m + gas bubbling/hissing from sandstones in Nyanda-4 core

CONSIDERING PARTNERING AND OTHER TRANSACTIONS

- State Gas operates successfully with a small team and limited resources and has received initial approaches and interest to progress the Reid's Dome Gas Project, including partnering and corporate transactions. The Board seeks to ensure that discussions include all qualified and interested parties

To view the full presentation, please visit:
http://abnnewswire.net/lnk/B9K47827


About State Gas Limited

State Gas Limited ASX:GASState 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.

 

abnnewswire.com 


Contact

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

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



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