Operational Update - Reids Dome Project & New Acreage Award
Operational Update - Reids Dome Project & New Acreage Award
Brisbane, Oct 1, 2020 AEST (ABN Newswire) - Following the exceptional results of the Nyanda-4 gas production test announced last week, where gas flow rates have approached 500,000 scf/d after two months of dewatering, State Gas Limited (ASX:GAS) is now actively planning Phase 2 of its exploration and appraisal program for its Reid's Dome Project (PL 231).

The Company is well-positioned with funding in place to commence Phase 2 drilling by mid-November this year. The Phase 2 campaign will obtain additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for early commercialisation of the Nyanda area (shown in Figure 1 below*).

Phase 2 of the program will involve drilling and production testing of at least four step out wells from Nyanda-4, with the possibility of two optional additional wells to further delineate gas resources across PL 231. A key objective is to obtain data on appropriate well spacing for field development via monitoring downhole pressures from several nearby wells producing simultaneously. The current production test at Nyanda-4 has been suspended until the new wells have been drilled so that communication with the nearby producing wells can be monitored.

Other key data from the new pilot wells to inform design and planning of processing facilities and other major infrastructure will include gas and water flow rates and composition from multiple wells over an extended period (e.g. 6 to 9 months).

While Phase 2 will focus on the Nyanda region of PL 231, gas flow rates continue to increase steadily at the Serocold-1 well, with very low water make. Damage to the well bore has limited the depth at which the pump could be placed, resulting in approximately 47% of the targeted coal seams below the pump and unlikely to contribute to this test. The Serocold-1 flow test will shortly be suspended to free up field operations to focus on the new drilling campaign.

Rolleston-West - New Gas Acreage Awarded During September 2020

State Gas is also undertaking planning for an initial gas well to be drilled within new acreage awarded to the Company in the recent Queensland Petroleum Land Release - proposed Authority to Prospect 2062, ("Rolleston-West"). The proposed well, to be named Rougemont-1, will investigate the highly-prospective and well-understood Bandanna coals in the eastern region of the acreage (shown in Figure 2 below*). The Rougemount-1 well will facilitate down-hole logging to determine coal thickness and depth of seams, along with permeability testing of seams. Subject to these results, the well may also be production tested during the Phase 2 program. The proposed Rougemount-1 will be strategically located within Rolleston-West to be close to State Gas' proposed northern route option for the export pipeline from PL 231 (Reid's Dome).

This proposed new well will be the first of several planned over the Initial Work Program for the Rolleston-West acreage, investigating both coal seam gas and conventional targets in the area.

Unified Gasfield Development

Under sole ownership by State Gas, the contiguous acreage areas (Reid's Dome and Rolleston-West) enable the co-ordination and integration of activities under a unified super-gasfield development that will provide economies of scale, efficient operations, and optionality in marketing. The Company holds Pipeline Survey Licence PSL 2049 (refer Figure 2) which includes potential pipeline routes that would conveniently service both Reid's Dome and Rolleston-West via the same corridor. Neither Reid's Dome nor Rolleston-West are restricted by domestic gas reservation requirements.

*To view tables and figures, please visit:

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
e-mail: lucy@stategas.com

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

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State Gas Limited

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