State Gas Limited Stock Market Press Releases and Company Profile
Aldinga East-1A spudded
Aldinga East-1A spudded

Brisbane, Oct 4, 2019 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) ("State Gas" or "the Company") is pleased to advise that the first well in its 2019 drilling program, Aldinga East-1A, was spudded at 10.15am this morning, 4 October 2019.

The well is being drilled by Gas Field Services Rig 12 to a planned total depth of 1200m. The well will investigate the gas potential of the Reid's Dome Beds coal measures in the northern area of the PL 231, following confirmation of gas presence in the coals at Nyanda-4 (drilled by the Company in 2018) approximately 12km to the south of Aldinga East 1A, and the encouraging results of seismic processing and interpretation announced on 9 September this year. Core samples will be obtained from the new well to confirm gas content and wireline logging will be used to determine net pay. Permeability measurements will be obtained by wireline formation testing.

Following the drilling of Aldinga East-1A, the Company plans to drill Serocold-1, approximately half way between Aldinga East-1A and Nyanda-4, to explore the central portion of the Reid's Dome anticline. The well is also planned to be drilled to 1,200 metres, again targeting the gas potential of the Reid's Dome Beds coal measures. Wireline logging and testing will be used to determine net pay and permeability.

Subject to the results of testing, State Gas may complete one or both of the new wells, and / or re-enter and complete the suspended Nyanda-4 well, for production testing.

The drilling and production testing at PL 231 is a key part of the Company's strategy to bring gas to market from the permit to meet shortfalls in the east coast domestic gas market forecast for 2021.

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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 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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Contact

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



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