State Gas to drill new horizontal well
State Gas to drill new horizontal well

Brisbane, Sep 12, 2022 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) is pleased to announce that the rig and associated equipment has commenced mobilising to site to drill its new horizontal well Rougemont-3.

Located approximately 1.4 km from the Rougemont-2 well, Rougemont-3 will drill two laterals horizontally to intersect with the Rougemont-2 vertical well. The laterals, starting at approximately 290 m true vertical depth and 320 m true vertical depth respectively, will cut through the two primary coal seams identified in the Rougemont-2 well. The target total in-seam length is approximately 2 km.

The Rougemont-2 well intersected ~9m of net coal, with two primary seams of 2.8 m and 2.4 m respectively. Drill stem testing of the seams indicated excellent permeability (395 mD) in the upper of these two seams and a more moderate, but still very promising 26 mD in the lower seam. At more than 94 % methane the gas in the seams is very close to pipeline quality. Gas contents at more than 5.4 m3/t were also promising.
Silver City Drilling Rig 20 is currently mobilising to the Rougemont-3 site, with spud of the well expected in the coming week.

Also mobilising is a Secure Well Services workover rig which will replace the current completion in Rougemont-2 with a ranging tool. The ranging tool will link to the lateral well direction finding equipment to ensure the laterals meet the vertical wells as intended.

Once the laterals are complete the workover rig will return and replace the pump in Rougemont-2. Production testing of the two wells, as an integrated well pair directly accessing more than 2 km of the reservoir, will then commence.

State Gas Executive Chairman Richard Cottee noted the significance of the well: "The Rougemont-3 well will be an important test of the productivity of the Rougemont area."

"The country, and indeed the world, is in dire need of gas, and this Rougemont gas is of excellent quality", he said.

"I am hopeful that this well and the subsequent production test will indicate that the area has the potential to provide new gas supplies to help meet the urgent demand."

*To view the Rougemont-3 laterals, 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, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.

Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).

State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.

The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.

State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.




Lucy Snelling
Head, Corporate and Commercial

Richard Cottee
Executive Chairman

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State Gas Limited

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