Nyanda-8 Evaluation
Nyanda-8 Evaluation
Brisbane, Jan 6, 2021 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) is pleased to advise the initial results of the second well in its Phase 2 drilling campaign, Nyanda-8, at its 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland.

Nyanda-8 is approximately 2.2 km south-west of the successful Nyanda-4 well, and together with Nyanda-7 (approximately 2.6km north of Nyanda-4 - see Figure 1*), was drilled as a coal seam gas (CSG) well as part of the Company's program to appraise the Nyanda Focus Area1 within PL231 for early development.

Nyanda-8 reached the targeted Total Depth of 1200m on 3 January 2021, following spud on 29 December 2020. Wireline logs indicate the well has intersected 19.7m net coal with open fractures apparent on the image log, exhibiting good potential for CSG production.

The results of both Nyanda-7 (as announced on 31 December 2020) and Nyanda-8 are within the expected range based on data for Nyanda-4, where testing in late 2020 recorded gas production at rates approaching 500,000 cubic feet per day2. All three wells have intersected good quality coals, with seams of similar thicknesses and depths, confirming the widespread presence of gas-bearing coal seams and significant net coal within the Nyanda Focus Area.

The next step in the appraisal of the Nyanda Area is to undertake production testing of the two new Nyanda wells and recommence the production test at Nyanda-4. To this end, the Completion/Workover Rig has commenced operations at Nyanda-4 to enable the production test to recommence, following which it will install pumps in both Nyanda-7 and Nyanda-8. All three wells are anticipated to be dewatering by the end of January to enable gas production.

The drilling rig is currently completing installation of casing at Nyanda-8, following which the crew will demobilise while the current La Nina weather event is at its peak. When an appropriate weather window opens, the crew will return and drill the proposed Aldinga-2 well in the northern area of PL 231, and Serocold-3 in the central area.

Commenting on the positive initial results State Gas Executive Chairman Richard Cottee provided some context: "The aim of this initial phase of our present drilling campaign was to prove up an initial Nyanda Area production zone with step out wells more than 2 km to the north (Nyanda-7), and south (Nyanda-8), of the proven Nyanda-4."

"To say that the results to date are encouraging would be an understatement. The geological parameters at Nyanda-7 appear to be better than Nyanda-4, whilst at Nyanda-8 they appear to be roughly equivalent."

"In testing last year, Nyanda-4 delivered gas production at rates approaching 500,000 cubic feet per day, which is a high benchmark for CSG."

"With all three wells expected to be on production testing by Australia Day we hope to be in a position to confirm our confidence shortly thereafter", said Mr Cottee.

Mr Cottee also commented on the campaign: "Conditions have been extremely trying with the onset of the wet season coming early, but it is testimony to the dedication of our drilling team that the platform for production testing of the initial production zone has reached this milestone."

*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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