State Gas Limited (
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 (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.
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