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.
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.
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 (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
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