State Gas Limited Stock Market Press Releases and Company Profile
Operational Update - Reids Dome Progress
Operational Update - Reids Dome Progress

Brisbane, Nov 7, 2019 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) ("State Gas" or "the Company") refers to its previous announcements1 relating to the spudding, commencement of coring, and encountering of conventional gas at the Aldinga East-1A well in the Reid's Dome Gas Project (PL 231).

The Company is pleased to advise that it has suspended drilling of the Aldinga East-1A well at the depth of 882m to enable wireline logging and permeability testing after encountering both coal seam gas and conventional gas in the well. Wireline testing services provider, Weatherford International, has mobilised to site and are commencing logging activities this morning. The results of the wireline logging will be used to identify coal seams and gas sands intersected in the well, including the most productive gas zones.

Approximately 12 kilometres to the south within PL 231, the Company has also been planning the re-entry and production-testing of suspended Nyanda-4. The production testing will provide important information for early commercialisation of the project and follows drilling success in late 2018 and excellent final gas content results from core samples from Nyanda-4 announced earlier this week. As advised, the average of the measured gas content from the coal desorption testing was 13.75 m3/t (among the highest for CSG projects), with 16.94 m3/t recorded for the thickest cored seam. The highest value obtained was 17.16 m3/t and the lowest value was 8.30 m3/t.

Accordingly, State Gas has engaged TDC Drilling Pty Ltd to undertake the current Nyanda-4 activities and mobilisation of TDC's Rig 4 to Nyanda-4 has commenced. TDC is expected to commence re-entry of Nyanda-4 next week, prior to completing the well for production testing.

State Gas is mindful of the impending wet season and is progressing field activities with a view to completing the 2019 program as early as practicable to minimise disruption from adverse weather.

Further updates will be provided during the current program as drilling and testing milestones are achieved and results become available.


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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