State Gas Limited Production Testing Update (GAS.AX)
State Gas Limited (GAS.AX) Production Testing Update – Promising First Gas Shows
Brisbane, Australia, December 17, 2021 – (ABN Newswire) – State Gas Limited (ASX: GAS) reports that the three production test wells continue to provide encouraging results after initial testing.
Following the highly successful production testing of the Nyanda-4 well earlier this year, State Gas began launching the nearby Nyanda-8 well last month. After 20 days of production testing, the well has an average of 16 bwpd and has a constant torch at 36% drawdown. Nyanda-8 production test started on November 28, 2021
The production test of Serocold-1 is part of the Company’s work program to confirm the commercialability of its Reid’s Dome (PL 231) project in central Queensland for the delivery of new gas supplies to the coastal market is. State Gas performed foam compression on the well last month to control unwanted silt and sand production. After 14 days of production testing, the well has an average of 55 bpd and has an intermittent gas flare at only 25% drawdown.
The production tests at Rougemont-2 were encouraging with gas production at 8 mcfd and water production at 36 bwpd after 32 days with a drawdown of 43%.
The Rougemont-1 and -2 wells are the first wells drilled in the eastern zone of ATP 2062, which was delivered to the Company in October 2020. The wells targeted coals from the Bandanna Formation – currently in commercial production in the south -is at the Santos operated the Arcadia Valley project and under development on the Mahalo project operated by Comet Ridge in the northeast. Drilling results have confirmed the presence of good amounts of gas at or near pipeline quality and the current test is to confirm its deliverability.
Water levels are carefully monitored and lowered to control the reduction in background pressures to optimize production. The first gas flows were unexpected.
“I am pleased that we are successfully producing from these wells in a controlled manner, and the initial gas production has been both unexpected and fortuitous,†said Company Executive Chairman Richard Cottee.
“Remote control of production via SCADA means that we are now much less vulnerable to weather instability at this season of the year,†he added.
“The gas content of Reid’s Dome is high – an average of 13.75 m3 / tonne at Nyanda-4, so I can’t wait to see the results of these new production tests,†Cottee said.
About State Gas Limited:
State Gas Limited (ASX: GAS) is a Queensland-based developer of the Reid’s Dome gas field, initially discovered during drilling in 1955, located in the Bowen Basin in central Queensland. State Gas is 100% owner of Reid’s Dome Gas Project (PL-231), a CSG and conventional gas field conveniently located 30 kilometers southwest of Rolleston, approximately 50 kilometers from the Queensland Gas Pipeline and the gas network interconnected from the east coast.
Permian coal measurements in the Reid Dome beds are extensive across the permit, but the area had not been explored for coal seam gas prior to State Gas ownership. In late 2018, State Gas drilled the region’s first coal seam gas well (Nyanda-4) in the Reid Dome beds and established the potential for a major coal seam gas project. in PL 231. The extension of coal measurements in the north and the central areas of the permit were confirmed at the end of 2019 by the drilling by the Company of Aldinga East-1A (12 km to the north) and Serocold-1 ( 6 km north of Nyanda-4).
State Gas is also the 100% holder of Prospect Authority 2062 (“Rolleston-West”), a 1,414 km2 permit (eight times the size of PL 231) which contiguous to Reid’s Dome Gas project. Rolleston-West contains very promising targets for coal seam gas (CSG) and conventional gas known in the permit area. It is not limited by domestic gas reservation requirements.
The contiguous zones (Reid’s Dome and Rolleston-West), owned exclusively by State Gas, allow for business integration and unified development of super gas fields, providing economies of scale, efficient operations and a marketing option.
State Gas is implementing its strategic plan to bring gas to market from Reid’s Dome and Rolleston-West to meet anticipated short-term deficits in the domestic east coast gas market. The strategy is to advance an assessment prog in stages
Contact:
Lucy snelling
Chief executive officer
Telephone: 0439 608 241
e-mail: [email protected]
Richard Cotte
Executive chairman
Telephone: 0458 517 850
email: [email protected]
Source:
State Gas Limited
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