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- State Gas (GAS) has commenced drilling the first well in its new Rolleston-West Gas Project in Central Queensland
- Rougemont-1 was spudded last Friday, and as of this Monday it has reached a depth of 75 metres
- The company is planning to hit a total depth of 800 metres, targeting gas-bearing coals 500 metres onwards
- Two wells will be drilled at Rolleston-West, as GAS tests the highly prospective Bandanna coals in the region
- Meanwhile, State Gas also reported encouraging results from its appraisal testing of the nearby Reid’s Dome Gas Project
- Shares in GAS are trading down 2.11 per cent at 46.5 cents per share
State Gas (GAS) has commenced drilling the first well in its new Rolleston-West Gas Project in Central Queensland.
Rougemont-1 was spudded last Friday, May 14, and as of this Monday, May 17, it has reached a depth of 75 metres.
The energy company is planning to hit a total depth of 800 metres at Rougemont-1, targeting gas-bearing coals 500 metres onwards.
State Gas is planning to drill two wells at Rolleston-West, in a bid to test the highly prospective Bandanna coals in the eastern arm of its permit.
It explained the Bandanna Formation is well established as a host of commercially viable coal seam gas, with ASX-giant Santos (STO) also developing projects nearby.
Explaining the significance of today’s spud update, GAS Executive Chairman Richard Cottee said it was a major milestone.
“This is the first well in the new acreage awarded by the Queensland Government to State Gas last year, increasing the Company’s potential many-fold,” he explained.
Meanwhile, State Gas also reported encouraging results from its appraisal testing of the nearby Reid’s Dome Gas Project.
The company noted since its last update, production at Serocold-1 well has reached 35,700 cubic feet (cft) per day – almost double the previous test.
Nyanda-4 well reached over 700,000 cft per day, before production resumed at the economic rate of around 100,000 cft per day, suggesting free gas in the intersected fractures has drained.
The production at Nyanda-4 well has begun increasing again since then and is currently producing 114,000 cft per day.
Nyanda-7 well has built up to producing 6700 cft per day, while Nyanda-8 well is currently approaching 44,000 cft per day.
State Gas’ shares are trading down 2.11 per cent at 46.5 cents per share at 12:50 pm AEST.
