Based on the Company's seismic reprocessing efforts during 2018, the Primero West-1 well was located and designed to test the Cattle Creek Formation within PL 231 and is 100%-funded by State Gas Limited in accordance with the requirements of the Joint Venture Operating Agreement.
Primero West-1 is located approximately 650m southwest of AOE-1 and is testing the southwestern extent of the Cattle Creek gas sand discovered in AOE-1 in 1955.
As previously advised, at completion of drilling, logging and flow-testing of Primero West-1, the well will be plugged and abandoned on the basis that any full-field development of the Cattle Creek Formation within PL 231 will require additional drilling and a focused seismic program to optimise the locations of production wells.
Following completion of activities at Primero West-1, Silver City Drilling Rig-25 will be mobilised to the Nyanda-4 site approximately 13.5 kilometres to the south within PL 231.
The Nyanda-4 well has a planned depth of 1,000 metres and is a jointly-funded well in accordance with the terms of the Joint Venture Operating Agreement. In accordance with the terms of the Agreement, State Gas is only responsible to meet its 60% of the costs.
State Gas Limited is Sole Operator and 60% owner of the Reid's Dome Gas Project (PL-231).
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 and 80%-owner (transitioning to 100%) of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline. http://www.stategas.com
Chief Executive Officer