State Gas Limited is pleased to provide a further update on its production testing strategy for the Rougemont 2/3 lateral well configuration at its Rolleston West Project (“Rougemont”). The Rougemont production test to date has been highly successful:
• delivering an excellent stable economic gas flow rate (approximately half a TJ of pipeline quality gas per day), with further improvement possible as dewatering continues;
• confirming excellent permeability within the target Bandanna coal seams; and
• providing further compelling justification to relocate the CNG compression assets to support early production from Rougemont.
Having achieved the significant milestone of proving stable economic gas flow rates, it is the Company’s intention to close down the well for a short period of time in order to conduct pressure build-up testing to gain a more comprehensive understanding of reservoir dynamics. Armed with this knowledge, State Gas’ intention would be to re-open the well, in conjunction with relocating the CNG facilities to a location which can support both the Reid’s Dome and Rougemont projects. The decision to close the well in the short term has the additional economic benefit of preserving the high-quality production testing gas until it can be captured for sale.
Executive Chairman, Richard Cottee said “Further to our previous announcements, we are excited that our assumption of extremely high gas production levels from Rougemont has been substantiated. These exceptional test results provide an excellent foundation for establishing a substantial gas reserve in the area and accelerating development of a substantial gas project in the region.”
"The Rougemont nose is gradually unlocking its secrets and I have no doubt that further analysis of reservoir dynamics will enable us to further optimise production when we recommence testing over coming months. Given the uncertainty surrounding domestic gas production this discovery has come at an extremely fortunate time.” Mr Cottee said.
This announcement was approved for release by the Board of Directors.
