State Gas Limited (GAS.AX) Coring Commences at Aldinga East-1A Reid's Dome
- 174
Gas has been observed bubbling from drill muds at Aldinga East-1A, as was similarly encountered in drilling and coring activities approximately 12 kilometres to the south within PL 231 on Nyanda Station.
The drilling activities at Aldinga East-1A encountered the top of the coals in the Reid's Dome Beds at 560m, which pleasingly, is at the shallowest of the Company's prognosed range of 560m-600m. The Company plans to cut approximately 150m of core samples prior to drilling ahead to the planned total depth of 1200m and conducting logging and permeability testing.
The core samples will be used in desorption testing to confirm gas content, while the logging of the completed well will be used to determine net pay. Wireline formation testing will be conducted to measure the permeability of the coals and sands in the Reid's Dome Beds encountered within the well.
On completion of the Aldinga East-1A well the rig, Gas Field Services Rig 12, will move approximately 7 km to the south to drill the Sercold-1 well in the central area of PL 231. The Serocold-1 well is also planned to be drilled to a total depth of 1200m, prior to logging and testing.
The two new wells will provide important data about the gas potential of the Reid's Dome Beds in the northern and central areas of the Company's 181 square kilometre Petroleum Lease.
Subject to the results of testing, State Gas may complete one or both of the new wells, and / or re-enter and complete the suspended Nyanda-4 well (drilled in November 2018), for production testing.
Following the successful outcome of Nyanda-4 in November 2018, on completion of drilling and testing of the two new wells at PL 231, State Gas will have obtained representative data on the gas content and permeability of the Reid's Dome Beds in the north, central and southern areas of the permit. This data, along with the encouraging results of the seismic processing and interpretation across PL 231 announced on 9 September this year will support resource modelling and planning activities for the Reid's Dome Gas Project.
Initial production metrics will be provided by the proposed production testing anticipated to follow the completion of these wells.
The current drilling and production testing at the Reid's Dome Gas Project is critical to the Company's strategy to bring gas to market from the permit to meet impending shortfalls forecast in the east coast domestic gas market.
Further updates will be provided during the current program as drilling and testing milestones are achieved and results become available.
About State Gas Limited:
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
http://www.stategas.com
Source:
State Gas Limited
Contact:
Greg Baynton Executive Director M: +61-414-970-566 E: [email protected]
ABN Newswire is a business newswire and press release distribution service for listed companies on stock exchanges globally. ABN Newswire distributes company announcements to the professional platforms, finance portals and syndicates important corporate news to a wide variety of news aggregators and financial news systems.
