State Gas Limited (ASX:GAS) refers to previous announcements in relation to recent activities at the Reid's Dome Gas Project (PL 231), including on 31 January 2020. The Company is pleased to provide an update on production testing of the first three Coal Seam Gas (CSG) wells at Reid's Dome, drilled by State Gas.

Aldinga-1A

While production testing has not yet commenced at Aldinga East-1A (drilled in October 2019) a very encouraging build up of pressure has been observed in the well. Following the discovery during drilling of a new conventional gas pool in the Cattle Creek Formation, the Company returned to Aldinga East-1A in January to remove drilling fluid from the well. Since then the Company has observed a build up in pressure at the wellhead, suggesting gas may have commenced flowing from the Formation.

The Company is continuing to monitor the well and will consider options for further testing in the coming months.

Nyanda-4

As previously advised, the Company commenced production testing at Nyanda-4 on 4 December.

Gas flows were noticed within the first week of pumping at Nyanda-4 and were recorded at 227 mscf/d after six weeks of dewatering, prior to technical issues interrupting depressurisation of the well. Although pumping has temporarily ceased, gas production is continuing at Nyanda-4.

Serocold-1

The Serocold-1 test commenced on 17 January 2020 and quickly provided indications of gas production within the first week of dewatering commencing. More recently, technical issues have been encountered during pumping, delaying ongoing dewatering at Serocold-1 until new equipment can be installed.

From the early indications, the Company is confident that the Serocold-1 well will successfully produce CSG.

While heavy rainfall at site over the past two weeks is preventing access, the Company has undertaken troubleshooting and believes it has identified production solutions for both Nyanda-4 and Serocold-1 wells.

With further rain forecast in the region, the Company is currently prioritising the options for recommencement of dewatering as soon access conditions permit.


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 prog

 

Contact

Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241
e-mail: lucy@stategas.com

Richard Cottee
Executive Chairman
Phone: 0458 517 850
e-mail: richard@stategas.com



Link: Operational Update Reids Dome Gas Project


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