Operational Update - Reids Dome Progress
The Company is pleased to advise that it has suspended drilling of the Aldinga East-1A well at the depth of 882m to enable wireline logging and permeability testing after encountering both coal seam gas and conventional gas in the well. Wireline testing services provider, Weatherford International, has mobilised to site and are commencing logging activities this morning. The results of the wireline logging will be used to identify coal seams and gas sands intersected in the well, including the most productive gas zones.
Approximately 12 kilometres to the south within PL 231, the Company has also been planning the re-entry and production-testing of suspended Nyanda-4. The production testing will provide important information for early commercialisation of the project and follows drilling success in late 2018 and excellent final gas content results from core samples from Nyanda-4 announced earlier this week. As advised, the average of the measured gas content from the coal desorption testing was 13.75 m3/t (among the highest for CSG projects), with 16.94 m3/t recorded for the thickest cored seam. The highest value obtained was 17.16 m3/t and the lowest value was 8.30 m3/t.
Accordingly, State Gas has engaged TDC Drilling Pty Ltd to undertake the current Nyanda-4 activities and mobilisation of TDC's Rig 4 to Nyanda-4 has commenced. TDC is expected to commence re-entry of Nyanda-4 next week, prior to completing the well for production testing.
State Gas is mindful of the impending wet season and is progressing field activities with a view to completing the 2019 program as early as practicable to minimise disruption from adverse weather.
Further updates will be provided during the current program as drilling and testing milestones are achieved and results become available.
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