State Gas Limited (ASX:GAS) ("State Gas" or "the Company") refers to its previous announcements of 4 October 2019 and 18 October 2019 relating to the spudding and commencement of coring at the Aldinga East-1A well in the Reid's Dome Gas Project (PL 231).

The Company has completed coring operations.

The cored interval from 563.5 - 649m contained coal seams and a conventional sandstone reservoir within the Reid's Dome Beds. Gas was noted bubbling from both coal and sandstone.

After pulling the coring assembly out of hole, the well started vigorously bubbling gas from the annulus.

As a result, the mud weight is currently being increased to control the gas influx and ensure the safety of the rig and personnel.

The gas is believed to be coming from the sandstone reservoir within the Reid's Dome Beds as typically gas will not be produced from coal seams until the pressure in the well is dropped by pumping fluid out of the well.

If significant gas is emanating from the sandstone, it is anticipated that this conventional gas will enhance the economics of any coal seam gas project at PL 231.

Further updates will be provided once drilling reaches total depth (targeted to be1,200m) and testing is undertaken.


About State Gas Limited

State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.

Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).

State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.

The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.

State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal prog

 

Contact

Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241
e-mail: lucy@stategas.com

Richard Cottee
Executive Chairman
Phone: 0458 517 850
e-mail: richard@stategas.com



Link: Conventional Gas at Aldinga East-1A Reid's Dome


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