Operational Update - Reid's Dome Project
Brisbane, Dec 9, 2019 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to provide a further update on field activities at its Reid's Dome Gas Project (PL 231).
Highlights:
- Serocold-1 spudded on 6 December 2019, with drilling and testing expected to be completed within approximately two weeks.
- Currently at 269m depth at Serocold-1, pulling out of hole to DST the Cattle Creek Sandstone.
- Nyanda-4 well placed on production test on 4 December and is currently de-watering.
- The increasing casing pressure being recorded at Nyanda-4 during early de-watering indicates that the well has already commenced desorption of gas from the coals and is a positive sign for future gas production.
- Aldinga East-1A (Cattle Creek Formation) wellhead gas sample tested by an independent laboratory confirmed 97.88% methane (i.e. pipeline quality gas).
- Essential data is being acquired for the Company's Target 2021 Gas-to-Market strategy.
As outlined in the Company's release of 3 December 2019, the field season at the Reid's Dome Gas Project is drawing to an exciting end with frenetic activity underway to complete work required to inform the planning of the Company's Target 2021 Gas-to-Market strategy.
Serocold-1
Located in the centre of PL 231, approximately half way between the Aldinga East-1A and Nyanda-4 wells (refer Figure-1*), Serocold-1 has been located to provide important information about the extent of coals and gas throughout the Reid's Dome Gas Project.
As the final well in the current field program, Serocold 1 was spudded on 6 December and is currently drilling ahead at 269m. After a 7" surface casing was set and cemented, Silver City Drilling 'SCD' Rig #25 is currently drilling below the 7" casing using a 6-1/8" drill bit.
Total Depth is planned for 1200m, within the prospective Reid's Dome Beds coal interval.
Nyanda-4
The first dedicated coal seam gas well in the Reid's Dome Gas Project, Nyanda 4, was drilled by State Gas in November 2018.
Nyanda-4 was placed on production test on 4 December 2019, with water being pumped-down in a controlled manner to decrease the hydrostatic pressure within the well in order to release gas in the coal seams.
The water level in Nyanda-4 is currently 233m below the well surface level, and the de-watering process has reduced the bottom hole pressure to 377 psi.
In a positive sign for future gas production from Nyanda-4 and the Reid's Dome coals, the increasing casing pressure being recorded within the Nyanda-4 well during early de-watering indicates that the well has already commenced desorption of gas from the coals.
Aldinga East-1A
The testing being conducted at Aldinga East 1A was completed on 5 December and included four successful Drill Stem Tests.
The pressure data acquired during testing reconfirmed the presence of gas within the Cattle Creek Formation sandstone at Aldinga East-1A.
A down-hole gas sample taken from the well was analysed by an independent laboratory as containing 97.88% methane (i.e. pipeline quality gas).
Permeability testing at Aldinga East-1A has proven difficult, with the sandstones within the well having absorbed significant drilling brine during the shut-in period of two months prior to testing. This absorption of drilling brine appears to have impaired the surrounding permeability of the reservoir within the well, reducing the reliability of permeability testing.
Target 2021 Gas-to-Market Strategy
This testing and drilling information being acquired during the 2019 field program at Reid's Dome is providing essential information for State Gas to design the pilot project for 2020 in order to optimise gas production and reserve upgrades in line with the Company's Target 2021 Gas-to-Market strategy.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/HLP4E0H8
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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