State Gas Limited Stock Market Press Releases and Company Profile
Restart of Production Testing at Reids Dome
Restart of Production Testing at Reids Dome

Brisbane, July 20, 2020 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) is pleased to announce the recommencement of production testing at the Company's 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland. Gas production testing has recommenced at both the Nyanda-4 the Serocold-1 wells.

State Gas is appraising the potential for the Reid's Dome Beds in PL231 to host a significant coal seam gas project.

Production tests of the Nyanda-4 and Serocold-1 wells in late 2019 - early 2020 produced very encouraging early results that were interrupted by pump issues in both wells. As announced on 2 June 2020, State Gas undertook an investigation of those issues and arranged for the manufacture in Canada of customised replacement pumps designed for the conditions. The pumps arrived in Australia early this month.

The new pumps have now been installed into the Serocold-1 and Nyanda-4 wells. Dewatering recommenced at Nyanda-4 on 16 July and at Serocold-1 on 18 July.

Nyanda-4 started producing measurable quantities of gas (10mscf) after only three days of pumping water. At Serocold-1 the casing pressure has increased after 1 day of pumping, a promising indication for gas production. The water levels are being drawn down slowly to maximise producibility with gas expected to flow once downhole pressures are sufficiently lowered.

Aldinga East-1A

As announced on 13 November 2019, a new conventional gas pool was discovered during the drilling of the Aldinga East-1A well. Subsequent tests of the gas sand failed to achieve gas flow, suggesting a water block (caused by the drilling fluid) has impeded flow. The Company has been monitoring a pressure build up at the well for several months and has now conducted a productivity test. This test has produced gas, indicating some dissipation of the water block and confirming the gas pool. The well will continue to be monitored for ongoing gas pressure build up and further testing will be considered.

State Gas is looking forward to announcing further positive results from Reid's Dome and will provide further updates in the near future.


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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