Commencement of Drilling for Maiden 2P Reserve
Brisbane, April 3, 2025 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to announce commencement of drilling at its Rolleston West Project in Queensland, with two new exploration wells underway within ATP 2062. The program forms part of the Company's broader Exploration Program targeting a maiden 2P gas reserve of 30-50 petajoules (PJ), supporting State Gas's strategy to supply high-quality gas to the East Coast energy markets.
HIGHLIGHTS:
- Rougemont 5 and Rougemont 6 wells spudded and cased to an initial depth of 12 metres
- Surface casing successfully set at Rougemont 6 to a depth of 152 metres
- Rougemont 6 expected to reach its total depth of 540 metres by the weekend
- Two-well program remains on track for completion by the end of May 2025
- Fully funded through a $5.5 million exploration grant from the Queensland Government
- Drilling results will support the establishment of a maiden 2P reserve targeting 30-50 PJ at Rolleston West
State Gas Managing Director, Doug McAlpine, commented: "Our team has done an outstanding job successfully completing the first casing section for the new Rougemont 6 vertical well in accordance with the Company's drilling strategy and timetable.
"We look forward to sharing initial wireline logging and drilling results in the coming days as we intersect gas-bearing coal seams at around 320 metres and progress to the target depth of 540 metres with the second casing string. Cumulative coal intersected, expected to measure approximately 8 metres, is anticipated to exhibit strong permeability and host high-quality methane, consistent with gas produced from the Rougemont 2/3 dual lateral well."
Successful drilling will lead to State Gas seeking maiden 2P reserve for Rolleston West Project Drilling results from Rougemont 5 and 6, including wireline logs and production testing, are expected to confirm the continuity and quality of the coal seams and support accreditation of a maiden 2P reserve of 30-50 PJ for the Rolleston West Project. Successful outcomes from the program will enable the Company to submit a petroleum lease application over a substantial portion of ATP 2062 and advance discussions with potential end users and pipeline infrastructure providers.
Program fully funded through $5.5 million Government grant
As announced on 10 May 2024, the drilling program at the two new exploration/appraisal wells is fully funded under the $5.5 million Queensland Government Frontier Gas Exploration Program.
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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