Reids Dome Production Testing Update
As advised on 27 January 2021, State Gas is undertaking production testing of three coal seam gas (CSG) wells in the Nyanda area at Reid's Dome (refer Figure 1) in order to appraise that area for early development.
Gas production continues strongly at the Nyanda-4 well. Growth in the production rate shows good consistency with prior testing of the well. Current rates are around 100,000 cubic feet a day, which is ahead of previous comparable production tests at Nyanda-4 based on the dewatering timeframe.
Dewatering of the new Nyanda-7 and Nyanda-8 wells continues steadily, to avoid "shocking" the coals and damage to the formation. The water level has now been lowered below the top of the coals in both wells and both exhibit indications of gas flow. Both wells show good recharge, a most promising sign for permeability, and interestingly, the recharge has increased when water levels have dropped below natural fractures in the coals that were identified on image logs. The increases in water flow indicates the natural fractures provide increased permeability, and hence improved potential gas production volumes from the well.
Planning is also underway for drilling at the Company's new Rolleston West permit (ATP 2062), located to the north-west of the Nyanda area at PL 231.
State Gas will continue to update the market as production testing continues and as drilling activities progress.
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