State Gas Limited (ASX:GAS) is pleased to advise that further evaluation of the Nyanda 7 coal seam gas well logs indicates 38.2 m net coal using parameters determined from Nyanda 4 core and desorption data.

Located approximately 2.6km north of the successful Nyanda 4 well at the Reid's Dome Gas Project, the Nyanda 7 well reached its total depth of 1,210m on 19 December 2020.

The net coal and seam thicknesses and good quality gas shows between 486 - 1210m in the Reid's Dome Beds coal measures are similar to those encountered in Nyanda 4. Borehole image data indicates numerous open natural fractures intersecting the coal seams in Nyanda 7. Fractures such as these are commonly associated with favourable gas flow rates. During testing at Nyanda 4 in September this year, coal seam gas was produced at rates approaching 500,000 cubic feet per day.

The Nyanda 7 well has had pre-perforated production liner and casing installed and the casing cemented to surface. The well has been suspended awaiting completion.

Mobilisation of the drilling rig to the Nyanda 8 well location commenced on 24th December with Nyanda 8 expected to spud in the next few days, weather permitting.

The Completion/Workover Rig is now on site and after the Christmas break, pumps will be installed at both Nyanda 7 and 8, and the Nyanda 4 pump will be serviced.

Production testing will commence as soon as possible in the new year.

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: Nyanda 7 Evaluation Update

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