State Gas Limited (ASX:GAS) advises that on 19th December Target Depth of 1212m was reached at Nyanda 7. The drilling showed net coal of over 30 metres with very encouraging gas readings on drilling. Nyanda 7 is presently being under-reamed after logging. The well will be cased to total depth and the casing cemented to surface. After which the rig will move to Nyanda 8. This should occur by the end of this week. The arrival of the Completion/Workover Rig is anticipated later this week which should allow pumps to be installed at both Nyanda 7 and 8 after the Christmas break with production testing to commence in the early new year.

On completion of drilling of Nyanda 8 and with the site at Aldinga 2 fully prepared, State Gas will make a decision on whether to move the rig to Aldinga 2 based on the weather forecast at that time.

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: Drilling Rig mobilisation to Reids Dome Gas Project

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