State Gas (ASX:GAS) - Executive Chairman, Richard Cottee
Executive Chairman, Richard Cottee
Source: Elixir Energy
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  • State Gas (GAS) begins a production test at the Serocold-1 well, which is part of the Reid’s Dome project in central Queensland
  • This work is designed to confirm the commercial potential of Reid’s Dome to deliver gas to the east coast market
  • State Gas has also just completed sleeving of the Serecold-1 well following successful production testing of the Nyanda-4 well and jetting at Nyanda-8
  • Company shares have ended the day trading steady at 27.5 cents

State Gas (GAS) has commenced a production test at the Serocold-1 well in central Queensland.

The production testing is part of a program of work aimed at confirming the commerciality of the company’s Reid’s Dome Project (PL231) to deliver gas to the east coast market.

Following successful production testing of the Nyanda-4 well, also part of Reid’s Dome, State Gas undertook jetting at the nearby Nyanda-8 well and has just completed sleeving of the Serocold-1 well to enhance the well’s production performances.

The Nyanda-8 production test began on November 28 and yesterday saw the pumps at Serocold-1 turned on.

State Gas is also conducting production testing at the Rougemont-2 well at its Rolleston-West Project (ATP 2062). The Rougemont-1 and -2 wells are the first wells drilled in ATP 2062, which was granted to the energy stock in October last year.

Positively for the company, recent drilling results confirmed the presence of “good quantities” of gas at or near pipeline quality and the current test is to confirm its producibility.

Water levels are slowly being drawn down to control the reduction in downhole pressures to optimise production. The company expects the tests will continue for the next several weeks before gas flows start.

Executive Chairman Richard Cottee was pleased to complete rig activities on all three wells.

“The recent rains have presented challenges but the team has worked well to juggle the schedule and minimise delays,” he said.

“Remote control of the production means we are now much less vulnerable to whatever La Nina throws at us.”

GAS ended the day trading steady at 27.5 cents.

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