Rougemont-3 Target Depth Reached with Strong Gas Shows
Brisbane, Sep 21, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to announce that its Rougemont-3 horizontal well has reached target vertical depth and has confirmed good net coal in line with expectations.
As indicated in its announcements on 12 and 16 September 2022, State Gas is currently drilling the Rougemont-3 horizontal well to confirm the potential of the Rougemont area within its Rolleston-West Project (ATP 2062). The well will be drill laterally through the coal seams of the Bandanna Formation to meet the vertical Rougemont-2 well. Once completed, the wells will be placed on production as a combined vertical - horizontal pair.
After 3 days, the well penetrated the top of the Bandanna Formation, and it has now drilled to its target vertical depth, below the coal seams of interest. As expected, the well intersected approximately 9 m net coal, with two primary seams of 2.0 m and 3.0 m respectively.
The top of these two primary seams was intersected at 226 mTVD, with the lower some 29 mTVD lower, placing both seams at optimum depth for coal seam gas production.
Strong gas shows associated with the coals were observed during drilling, a promising sign for future productivity.
Notably, the coal seams in the formation clearly correlate (on a one for one basis) with the coals in both the Rougemont-1 and Rougemont-2 wells drilled by the Company in 2021 and with coal exploration wells some 10 km to the west. This correlation is evidence of a very high level of continuity in the coals extending across the area. This is encouraging, suggesting promising results from this well may be reproducible across the field.
Preparations are now underway to commence drilling the lateral through the primary coal seam in the well.
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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