Rougemont Production Testing Update and Grant of ATP 2069
Brisbane, Feb 23, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to advise further encouraging results from continued production testing of the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"). Despite the Bandanna coal seams still being covered by 120 metres of water, daily gas production at Rougemont 2/3 is now exceeding 100,000 cubic feet of gas per day. The rapid increase in daily gas production, during the past week since the Company's last announcement (16 February 2023), continues to indicate the excellent permeability of Rougemont's coals and the possibility of extremely high gas production levels from the pilot well.
Executive Chairman, Richard Cottee said "Despite the coals still being subject to approximately 120 metres of water pressure, the gas production rate has increased by 50,000 scft/day in just eight days - quite a step up."
While de-watering activities continue at Rougemont 2/3, the Company is now planning the evaluation of the area surrounding Rougemont for the purposes of establishing a substantial gas reserve. "Bringing substantial new gas supply to market quickly from Rougemont will help alleviate the inevitable Eastern Seaboard gas shortfall," Mr Cottee said.
Award of ATP 2069
In May 2022, State Gas announced that in joint venture with Santos QNT Pty Ltd, a wholly owned subsidiary of Santos Limited (ASX:STO) (SSLTY:OTCMKTS), it had been appointed as preferred tenderer of two substantial highly prospective coal seam gas exploration areas (PLR 2021-1-2 and PLR 2021-1-3). As shown in Figure 1*, these areas are adjacent to the Arcadia Valley gas field and are contiguous with existing project areas held by State Gas and Santos, offering potential development synergies for that area and economies of scale around capital, operations and off-take.
The Company is pleased to advise that ATP 2069 has now been formally granted over the PLR 2021-1-3 area, permitting commencement of early works. Mr Cottee said "The way is now clear to accelerate the exploration and evaluation of ATP 2068 (previously granted) and ATP 2069 in conjunction with our joint venture partner Santos. Those strategically located tenements present a unique opportunity to bring online another substantial high quality gas resource in a known gas producing region that is well located to infrastructure at a time when new gas supply is critical," Mr Cottee said.
Earlier this week, the importance of this CSG province was highlighted with the announcement of federal environmental approval for 116 new CSG wells in the Bandanna Coal Formation within the neighbouring Arcadia Valley gas field.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/X9FQ5975
About Santos Limited
Santos (ASX:STO) is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying the energy needs of homes, businesses and major industries across Australia and Asia.
With its origins in the Cooper Basin, Santos has one of the largest exploration and production acreages in Australia and extensive infrastructure and is committed to supplying the domestic markets, unlocking resources and driving value and performance.
Underpinned by a portfolio of high-quality liquefied natural gas (LNG), pipeline gas and oil assets, Santos seeks to deliver long-term value to shareholders.
Santos' foundations are based on safe, sustainable operations and working together with our shareholders, host communities, governments and business partners.
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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