State Gas Limited Stock Market Press Releases and Company Profile
Quarterly Activities Report
Quarterly Activities Report

Brisbane, Jan 31, 2020 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) (State Gas or the Company) is owner and operator of the Reid's Dome Gas Project (PL 231) in central eastern Queensland, approximately 545 km northwest of Brisbane and 50 km southwest of Rolleston, in the Bowen Basin Central Queensland. The permit hosts both conventional and unconventional gas and is less than 50 km from the high pressure gas pipeline network in Queensland (see Figure-1*).

HIGHLIGHTS:

- Significant steps taken to advance the Company's Target 2021 gas-to-market strategy for the Reid's Dome Project with drilling and commencement of production testing.

- In the southern area of PL 231, encouraging Nyanda-4 production testing results received with early commencement of gas flows, and recorded gas rates of 227 mscf/d (expected to increase with further dewatering).

- Coal seam gas potential also confirmed in northern and central areas of permit with positive results from drilling new Aldinga East-1A and Serocold-1 wells.

- New conventional gas pool also discovered at Aldinga East-1A (northern PL 231).

- Commencement of activities to production test Serocold-1 well (central PL 231).

In late 2018 State Gas drilled the first coal seam gas well in the region into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231.

In August 2018 Pipeline Survey Licence 2028 was issued to the Company, enabling investigations to commence for a pipeline route to market. 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 the drilling program undertaken in November-December 2019.

During the previous Quarter State Gas adopted "Target 2021", a strategy to bring gas to market from PL 231 to meet forecast shortfalls in the east coast domestic gas market as early as 2021.

Outlined in its announcement of 21 August 2019 and presentations dated 8 and 22 October 2019, 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.

PROJECT ACTIVITIES

The December 2019 Quarter has been a period during which the Company has significantly advanced its Target 2021 gas-to-market strategy. Having established the potential for a significant coal seam gas project in PL 231 with the 2018 drilling of Nyanda-4, the Company is now appraising that potential with drilling and the commencement of production testing during the Quarter.

The Nyanda-4 corehole provided a suite of data about the southern area of the permit which has been extended during the Quarter with promising results from production testing. In addition, the Company drilled the Aldinga East-1A corehole approximately 12km to the north of Nyanda-4 and the Serocold-1 well approximately half way between these wells (see Figure 1*), to provide data about the nature and extent of the coals across the permit.

*To view the quarterly report, please visit:
https://abnnewswire.net/lnk/7GLD5O02


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.

 

abnnewswire.com 


Contact

Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241
e-mail: lucy@stategas.com

Richard Cottee
Executive Chairman
Phone: 0458 517 850
e-mail: richard@stategas.com



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