Production Update - Reids Dome
Production Update - Reids Dome
Brisbane, Sep 11, 2020 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) is pleased to advise that gas flow rates at its Nyanda-4 and Serocold-1 wells continue to build, with the Nyanda-4 well this morning flowing gas at 128 mscf (or 128,000 standard cubic feet) per day.

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 centre.

Gas production at the Serocold-1 well is also increasing. Previously advised damage to the well bore limited the depth at which the pump could be placed, resulting in approximately 46% of the targeted coal seams below the pump and unlikely contributors to this test1. The gradual increase in flow rates is encouraging and bodes well for the future. Water production at both wells remains low, providing further positive signs for future production from the Reid's Dome CSG field.

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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.



Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241

Richard Cottee
Executive Chairman
Phone: 0458 517 850

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