Production Update - Reids Dome
Production Update - Reids Dome
Brisbane, Sep 2, 2020 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) is pleased to advise that gas flow rates from its Nyanda-4 well have now exceeded 100 mscf (or 100,000 standard cubic feet) per day. This encouraging milestone was achieved over the weekend; since then rates have continued to increase, with the gas flow rate yesterday recorded at 114 mscf/d.

As previously advised, the Company has been investigating the potential for a significant coal seam gas (CSG) resource at its 100% owned Reid's Dome Gas Project (PL231), undertaking Phase 1 of an exploration and appraisal programme to confirm the widespread presence of CSG across PL231. The successful Phase 1 confirmed significant coal seam gas across more than 12 kilometres within PL 231 through drilling and testing of three wells, Nyanda-4, Serocold-1 and Aldinga East-1A. It is currently production testing the Nyanda-4 well in the south of the permit and Serocold-1 in the centre1.

Gas production at the Serocold-1 well also continues to build, albeit more slowly. As advised in earlier updates, well damage limited the depth at which the pump could be placed, and approximately 46% of the targeted coal seams are below the pump and will not be dewatered by the test. Rates similar to those being achieved at Nyanda-4 are unlikely from this test, but the gradual increase in flow rates is encouraging.

Confirmed in late August, State Gas is also progressing the planning of an export pipeline from PL231. Following a desktop study of potential routes, State Gas refined the area of its survey licence to the area of the identified routes. Petroleum Survey Licence (PSL) 2049 was issued to the Company over the new area on 27 August 2020, enabling on the ground investigations into the potential routes to proceed. State Gas plans to commence ground investigations and discussions with landowners once current COVID-19 concerns recede. A map of the area of PSL 2049 is below.

State Gas Executive Chairman, Richard Cottee said he was very pleased with the progress of the wells at Reid's Dome.

"Exceeding 100 mscf/d after less than six weeks of dewatering is very promising. Similar results from Serocold-1 are not expected from the current testing program, given the extent of well damage at that site. However, the gradual increase we are seeing in daily production at Serocold-1 is also very encouraging for the future," Mr Cottee said.

"The gas production data is a key input for certification of the gas resource at Reid's Dome. We expect to receive a maiden certified resource from Netherland Sewell & Associates by the end of September."


About State Gas Limited

State Gas Limited ASX:GASState 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.

http://www.stategas.com

 


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



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