Drilling Rig mobilisation to Reids Dome Gas Project
The Rig will drill at least four production wells on PL231 in the next phase of State Gas' exploration and appraisal program for the Project, where the Company is implementing its strategic plan to bring gas to market to meet near term forecast shortfalls in the east coast market. Centred on the highly successful Nyanda-4 well, at least four step-out wells will be drilled and production tested, providing additional data to secure a significant certified reserves booking and enable field development planning and infrastructure design for commercialisation of the Nyanda area.
During production testing in the September Quarter, the Nyanda-4 well flowed gas at highly-commercial rates approaching 500,000 scf/day, after only two months of production testing.
The first new well to be drilled will be Nyanda-7, approximately 2.6 km to the north west of the Nyanda-4 well. Spud of the well is expected next week. The Company is hoping to complete drilling of at least two wells, and commence production testing of three (including Nyanda-4), before the wet season impacts.
The Silver City Drilling Rig 25 has a strong track record at the Reid's Dome Gas Project, having previously drilled the successful Primero West-1, Nyanda-4, and Serocold-1 wells for State Gas.
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.
State Gas Limited