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Rig two completing the Rougemont-2 well for production. Source: State Gas
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  • State Gas (GAS) commences production testing at the Rougemont-2 well in Central Queensland
  • The Rougemont 1 and 2 wells were the first wells awarded to the company last October
  • The wells, south-west of Rolleston, were drilled to test the potential of the eastern area of the permit for a coal seam gas project, targeting the Bandanna coal measures
  • Both wells intersected about eight metres of net Bandanna coal, primarily in two seams each more than two metres thick
  • On the market, State Gas is up 1.61 per cent and is trading at 31.5 cents per share

State Gas (GAS) has commenced production testing at the Rougemont-2 well in Central Queensland.

The Rougemont 1 and 2 wells were the first wells awarded to the company last October.

The wells, south-west of Rolleston, were drilled to test the potential of the eastern area of the permit for a coal seam gas project, targeting the Bandanna coal measures.

Both wells intersected about eight metres of net Bandanna coal, primarily in two
seams each more than two metres thick.

Permeability testing during drilling showed permeability in the Rougemont-2 well at 395mD — a promising result.

State Gas has now commenced the process of proving this permeability, with the first production test for the region commencing yesterday.

Water levels in the well will be slowly reduced at a controlled rate to carefully manage downhole pressures. Initial gas production is expected to be similarly controlled at low rates, and increase over time.

The focus has now turned to the company’s Reid Dome Project at PL 231, with production works at the Serocold-1 and Nyanda-8 wells to commece soon.

“These works are the next step in progressing the project towards delivering new gas supplies to meet forecast shortfalls in the east coast Australian gas market,” the company said.

On the market, State Gas was up 1.61 per cent and is trading at 31.5 cents per share at 1:19 pm AEDT.

GAS by the numbers
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