Rougemont Production Testing Update Coals Begin Unloading
Brisbane, Feb 16, 2023 AEST (ABN Newswire) - After several months of careful draw-down to reduce water levels in the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"), State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to advise that the pilot is beginning to show early signs of the coals unloading their gas.
As of 14 February 2023, gas flow rates have exceeded 50,000 cubic feet per day and are steadily increasing despite water levels being still 170 metres above the uppermost coal seam. Coincident with reaching desorption pressure, the well commenced surging both gas and water, indicating good permeability and strong drive. It is anticipated that, as further water is removed from the well and drained from the coal cleats, gas rates will continue to climb.
Executive Chairman, Richard Cottee advised that the strong early gas flows at this stage of dewatering were an early sign of the success of the lateral well technique at Rougemont 2/3.
"The fact that we are already getting 50,000 standard cubic feet per day flow rates when the coal is still 170 metres underwater is extremely pleasing" said Richard Cottee, Executive Chairman.
"I can't wait to see the flow rates when the water level falls below the coals and gas is more freely liberated", Mr Cottee said.
The Company will keep the market informed of continued progress with production testing results from Rougemont and is now evaluating the location for further step-out wells to support an initial resource estimate for the project.
Accelerating the delivery of pipeline quality gas from Rougemont is a critical part of the Company's strategy to supply the tightening eastern seaboard gas market. Production from Rougemont could be additional to that included in the ACCC's long term supply analysis. Gas from the Company's permits is not restricted by domestic gas reservation requirements, and therefore, has the flexibility of being sold to either local customers or export markets.
About State Gas Limited
State 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.
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