State Gas Limited (ASX:GAS) refers to its previous announcements of 5 December 2018, 21 January 2019, 13 March 2019 and 29 April 2019 relating to results from the 2018 Nyanda-4 well in the Reid's Dome Gas Project (PL 231).

The Company has received the final Gas Content Testing report on the core samples obtained from the Nyanda-4 well, drilled by the Company in late 2018.

The final average of the measured gas content from the coal desorption testing is 13.75 m3/t from 10 samples. Gas content for the thickest cored seam is 16.94 m3/t. The highest value obtained was 17.16 m3/t and the lowest value was 8.30 m3/t. These data confirm the range expected by the Company.

These figures replace all prior advices from the Company as to content from the Nyanda-4 well, including in presentations dated 8 October 2019 and 22 October 2019.

Nyanda-4 was the first well drilled in the permit to test the gas potential of the Reid's Dome Beds coal measures and has established a new coal seam gas play in the Denison Trough. The well was drilled to a total depth of 1200m, from which 150m of core was obtained, commencing at 394m depth. Wireline logging at total depth confirmed 40.4m of net coal in multiple seams up to 4m thick, and a further 25m of carbonaceous shales and thinner coal seams (i.e. <0.2m), indicating 65m of coals and carbonaceous shales (excluding conventional sandstones).

As previously advised, drilling activities are currently underway approximately 12 kilometres north within PL 231 at Aldinga East-1A, with both coal seam gas and conventional gas encountered during that drilling to date. Further updates will be provided once drilling at Aldinga East-1A reaches total depth and testing is undertaken.

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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: Final Gas Content Testing Reids Dome


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