State Gas Limited Stock Market Press Releases and Company Profile
Primero West-1 Logging and Testing
Primero West-1 Logging and Testing

Brisbane, Nov 19, 2018 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) advises that logging and testing activities of the Primero West-1 well at the Reid's Dome Gas Project (PL 231) have been successfully completed.

The Primero West-1 well was located and designed to test the Cattle Creek Formation within PL 231 and is being 100%-funded by State Gas Limited in accordance with the requirements of the Joint Operating Agreement.

The "Primero" gas sand was identified in the Cattle Creek Formation in Primero West-1 from 131.5 metres depth, with quick-look petrophysical analysis indicating a net gas-bearing zone of 7.5 metres apparent in wireline logging undertaken by Weatherford.

Firetail conducted flow testing and sampling, with two gas samples obtained for gas composition analysis. Firetail measured a maximum gas flow rate of 0.436 mmscf/d through a 48/64" choke, in line with expectations.

Primero West-1 is located approximately 650m west-southwest of AOE-1 and tested the southwestern extent of the Cattle Creek gas sand discovered in AOE-1 in 1955. The well was drilled to its planned total depth of 250 metres to achieve this objective and meet State Gas Limited's obligations under the Joint Operating Agreement.

As previously advised, the Primero West-1 well is being plugged and abandoned on the basis that any full-field development of the Cattle Creek Formation within PL 231 will require additional seismic to optimise the locations of production wells.

The Silver City Drilling Rig-25 is currently being mobilised from Primero West-1 to the Nyanda-4 site approximately 13.5 kilometres to the south within PL 231.

The Nyanda-4 well has a planned depth of 1,000 metres and is a jointly-funded well in accordance with the terms of the Joint Operating Agreement, with only 60% of the costs being met by State Gas Limited.

State Gas Limited is sole Operator and 60%-owner of the Reid's Dome Gas Project.

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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.

 

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Contact

Lucy Snelling
Chief Executive Officer
M: +61-439-608-241
E: lucy@stategas.com

Greg Baynton
Executive Director
M: +61-414-970-566
E: greg@stategas.com



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