Rougemont Production Testing Update
Brisbane, April 18, 2023 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) (STGSF:OTCMKTS) is pleased to provide a further update on its production testing strategy for the Rougemont 2/3 lateral well configuration at its Rolleston West Project ("Rougemont"). The Rougemont production test to date has been highly successful:
- delivering an excellent stable economic gas flow rate (approximately half a TJ of pipeline quality gas per day), with further improvement possible as dewatering continues;
- confirming excellent permeability within the target Bandanna coal seams; and
- providing further compelling justification to relocate the CNG compression assets to support early production from Rougemont.
Having achieved the significant milestone of proving stable economic gas flow rates, it is the Company's intention to close down the well for a short period of time in order to conduct pressure build-up testing to gain a more comprehensive understanding of reservoir dynamics. Armed with this knowledge, State Gas' intention would be to re-open the well, in conjunction with relocating the CNG facilities to a location which can support both the Reid's Dome and Rougemont projects. The decision to close the well in the short term has the additional economic benefit of preserving the high-quality production testing gas until it can be captured for sale.
Executive Chairman, Richard Cottee said "Further to our previous announcements, we are excited that our assumption of extremely high gas production levels from Rougemont has been substantiated. These exceptional test results provide an excellent foundation for establishing a substantial gas reserve in the area and accelerating development of a substantial gas project in the region."
"The Rougemont nose is gradually unlocking its secrets and I have no doubt that further analysis of reservoir dynamics will enable us to further optimise production when we recommence testing over coming months. Given the uncertainty surrounding domestic gas production this discovery has come at an extremely fortunate time." Mr Cottee said.
About State Gas Limited
State 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.