- State Gas (GAS) is releasing a resource estimate for its Rolleston-West Project, after receiving the result from its recent drilling at the Rougemont wells
- The company says the resource estimate for the East Bandana Fairway within Rolleston is between 53 petajoule to 161pj
- GAS’s nearby Reid’s Dome asset has also been assigned a resource estimate of between 74pj to 223pj
- Additionally, State Gas says the gas in the Rougemont seams are more than 96 per cent methane and pipeline quality once dehydrated
- Shares in State Gas ended the day up 2.56 per cent at 40 cents each
State Gas (GAS) is releasing a resource estimate for part of its Rolleston-West Project, after receiving results from its drilling at the Rougemont wells.
The energy stock has assigned a resource estimate for the East Bandana Fairway within Rolleston of between 53 petajoule (pj) to 161pj, with best estimate of contingent resources of 91pj.
The nearby Reid’s Domes Project has been assigned a resource estimate of between 74pj to 223pj, with best estimate of contingent resources of 126pj
The resource at East Bandana was based on drilling at the Rougemont-1 and Rougemont-2 wells, investigating the potential of the eastern area for a coal seam gas project.
Latest results from the drilling found the Rougmont-2 seam had permeability of 395 millidarcy.
State Gas also revealed the gas content for the two primary seams in the Rougemont wells is up to 6.2 cubic meters per tonne dry ash free.
Additionally, the gas in the seams are more than 96 per cent methane, which State Gas said would become pipeline quality once dehydrated.
Executive Chairman Richard Cottee said the results show the Rolleston-West asset could support a coal seam gas project.
“We already knew we had good coal thickness and absolutely outstanding permeability at Rougemont-2. Now, with these gas content numbers, we have every expectation that the area will support a very commercial project,” Mr Cottee said.
“This is particularly so with the gas composition, this is pipeline quality gas, just needing dehydration and compression to enter the network, the least processing possible.
“I am also very pleased with the contingent resource estimates received for both Reid’s Dome and Rolleston-West. I have always had confidence in the ‘size of the prize’ at these Projects, and now see my confidence confirmed.”
Shares in State Gas ended the day up 2.56 per cent at 40 cents each.