State Gas Limited (ASX:GAS) is pleased to advise that the Nyanda-7 well, the first well in its Phase 2 exploration and appraisal program for the Reid's Dome Gas Project (PL 231), spudded at 9 am this morning, 15 December 2020.

The Nyanda-7 well is part of State Gas' 100% owned Reid's Dome Gas Project on PL231, located in the Bowen Basin in Central Queensland. State Gas' Phase 2 exploration and appraisal program is being undertaken to implement the Company's strategic plan to bring gas to market to meet near term forecast shortfalls in the east coast market. Focused on the area around the highly successful Nyanda-4 well, the program has been designed to provide additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for commercialisation of gas in the Reid's Dome Coal Beds in the area.

Approximately 2.6 km north of the Nyanda-4 well, the Nyanda-7 well is being drilled as a step out well to Nyanda-4, from which gas was produced at rates approaching 500,000 cubic feet per day. The Company plans to log the new well once it reaches total depth (planned at 1200m), and subsequently commence production testing.

Nyanda-7 will be followed by at least three further production wells on PL231, with timing of the further wells dependent on weather. The Company is hoping to complete drilling of at least two wells, and commence production testing of three (including Nyanda-4), before the wet season impacts.

State Gas is also planning the drilling of two coreholes at its new Rolleston-West Project (ATP 2062) to commence in the New Year. These wells will investigate the gas potential of the highly prospective Bandanna Coals in the eastern region of the 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.



Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241

Richard Cottee
Executive Chairman
Phone: 0458 517 850

Link: Spud of First Well in Production Well Campaign

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