Next Phase of Production Activities Commenced

Source: 10/28/2021, Location: Not categorized

• Production enhancement works starting at Reid’s Dome Gas Project
• Production testing to start at Rougemont-2 well at the Rolleston-West Gas Project
• Works are expected to be complete, and production tests commenced (or recommenced) by the end of November.

State Gas Limited announces the commencement of the next phase of its activities in its program to bring new gas supplies to market to meet impending shortfalls in the east coast market. Following encouraging results at both its Reid’s Dome and Rolleston-West Projects in Central Queensland, State Gas is progressing with field works at both locations.

At Reid’s Dome (PL 231) the production test of the Nyanda-4 well demonstrated the potential of the area, producing at a stabilized rate of 140,000 cubic feet per day, punctuated by peak rates of up to 700,000 cubic feet/day1. The Company is now undertaking works on the nearby Nyanda8 well (approximately 2.2 km to the south), and Serocold-1 in the central area of PL 231, aiming to deliver production from those wells to the levels achieved at Nyanda-4. Serocold-1 previously suffered technical difficulties associated with the pump, and the new work to be performed will involve sealing off more of the wellbore to facilitate improved pump performance. At Nyanda-8 selected coal seams will be targeted using abrasive jetting techniques to improve the well’s access to the productive zones.

At Rolleston-West (ATP 2062) the Company will conduct the first production test in the area at the Rougemont-2 well which was drilled in June this year. The Rougemont-2 well intersected more than 8m net of coal seams in the Bandanna Formation, starting at the depth of 316m.

Laboratory analysis of the gas contained in the coals indicated it is approximately 96% methane, near pipeline quality. Testing of the major gas-bearing coal seams during drilling showed outstanding permeability: the thickest seam (2.8m thick) recorded permeability of 395mD, a result which is extremely positive for commercial production2. The upcoming production test is the next step in proving the Rougement-2 well’s potential and in assessing the potential for the broader Bandanna East CSG fairway in ATP 2062.

A services rig is currently mobilizing to site to undertake the work at all three wells. Works are expected to be complete, and production tests commenced (or recommenced) at all three wells by the end of November (weather permitting).

This announcement was approved for release by Mr Richard Cottee, Executive Chairman.

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