Reids Dome Production Testing Update
As advised on 27 January 2021, State Gas is undertaking production testing of three coal seam gas (CSG) wells in the Nyanda area at Reid's Dome (refer Figure 1*) in order to appraise that area for early development.
Gas production at the Nyanda-4 well continues to build. As at 6am today (approximately three weeks after the well was recommissioned) the well was producing at the rate of 100,000 cubic feet a day, and rising. This rate is materially higher than the rates achieved at similar stages in prior testing (boosted by work the Company has done on the well). It is also an important milestone in achieving commercial viability for a CSG well.
Dewatering of the Nyanda-7 well commenced two weeks ago. The well has shown good recharge (a promising sign for permeability) and with the Company adopting a cautious approach to dewatering, the water level in the well is just now approaching the top of the coal seams. Gas production is expected to become measurable shortly after the level drops below the coals.
With dewatering also underway at Nyanda-8, the water level in that well has just dropped below the top coal seam, and gas produced from the well has now become measurable and is continuing to rise. Currently, the well is producing approximately 5,000 cubic feet of gas per day. The water level will continue to be lowered over the next few weeks.
State Gas will continue to update the market as production testing continues.
*To view tables and figures, please visit:
About State Gas Limited
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
State Gas Limited