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Gas production testing at Serocold-1. Source: State Gas
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  • State Gas (GAS) announces the second phase of its operation to introduce new gas supplies to the market in order to address anticipated shortages on the east coast
  • State Gas is moving on with field work at both its Reid’s Dome and Rolleston-West projects in Central Queensland, following “encouraging” findings at both
  • Work is planned to be completed by the end of November, with production tests starting (or recommenced).
  • Shares in GAS rounding off the day of trading at 30 cents, 1.69 per cent higher

State Gas (GAS) has announced the start of the second phase of its initiative to bring new gas supplies to the market in order to “to meet impending shortfalls in the east coast market”.

State Gas is moving on with fieldwork at both its Reid’s Dome and Rolleston-West projects in Central Queensland, following “encouraging” findings at both.

The Nyanda-4 well production test at Reid’s Dome confirmed the area’s potential, producing at a stabilised rate of 140,000 cubic feet per day, interrupted by peak rates of up to 700,000 cubic feet per day, GAS said.

The company is presently working on the neighbouring Nyanda-8 well (about 2.2 kilometres to the south) and Serocold-1 in the centre region of prospecting license 231, with the goal of increasing output from both wells to the levels obtained at Nyanda-4.

Serocold-1 previously experienced pump-related technical challenges, and the current work will involve sealing off more of the wellbore to permit enhanced pump performance.

At Nyanda-8, abrasive jetting techniques will be used to target specific coal seams in order to enhance well access to productive zones.

The company will execute the first production test in the region at Rolleston-West (authority to prospect 2062) at the Rougemont-2 well, which was drilled in June of this year.

Starting at 316m, the Rougemont-2 well intersected more than 8m net of coal seams in the Bandanna Formation.

A laboratory investigation of the gas contained in the coals revealed that it is around 96 per cent methane, which is close to pipeline quality the company said.

During drilling, the principal gas-bearing coal seams were tested for permeability, with the thickest seam (2.8m thick) recording permeability of 395mD, a result that is highly promising for commercial production, State Gas claimed.

The forthcoming production test is the next stage in establishing the viability of the Rougement-2 well and analysing the possibility of the larger Bandanna East CSG fairway in ATP 2062.

A services rig is presently being mobilised to the site to complete the work at all three wells. Work is planned to be completed by the end of November, with production testing beginning (or recommenced) at all three wells, weather permitting.

Shares in GAS rounding off the day of trading at 30 cents, 1.69 per cent higher.

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