Reid's Dome Production Testing Update
Brisbane, Dec 30, 2019 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to provide an update on the early results of production testing at its 100%-owned Reid's Dome Gas Project (PL 231) in Central Queensland.
As previously advised, production testing at Nyanda-4 in the southern area of the project commenced on 4 December 2019 and early results have been very encouraging. After 13 days of dewatering, State Gas reported gas flowing at a rate of 156 mscf/day.
Production volumes at Nyanda-4 have continued to increase steadily during December. The Company is now pleased to advise that Nyanda-4 gas production is currently at 436 mscf/day, with the fluid level in the well at 648 metres below surface.
The main coal seams of the Reid's Dome Beds in Nyanda-4 are located between 396 and 1127 metres, and production is continuing to steadily increase.
Within the central area of the Reid's Dome Gas Project, the new Serocold-1 well was drilled during December and will be placed on production test shortly in the New Year.
The strong gas production results since dewatering commenced at Nyanda-4 are highly encouraging for the Reid's Dome Gas Project and the Company's Target 2021 Gas-to-Market strategy.
Further production updates will be issued in the New Year.
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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