- State Gas (GAS) has provided an update on production testing at its Reids Dome Gas Project in the Bowen Basin of Queensland
- The company's activities at the site have been interrupted by flooding and other severe weather events in the region
- But, GAS advises that dewatering and gas production of the Nyanda area wells has continued following the interruptions
- Gas flow continues to increase with the rate now at 6000 cubic feet per day recorded at Nyanda-7, and 42,000 cubic feet per day at Nyanda-8
- Additionally, a workover of the Serocold-1 well has been completed, with a liner now installed allowing the down-hole pump to be set 330m lower than before
- Shares in State Gas are trading steady at 56.5 cents
State Gas (GAS) has provided an update on the production testing happening at its Reids Dome Gas Project in the Bowen Basin of Queensland.
The company's activities at the site were interrupted by recent flooding and other severe weather events that occurred in the region throughout March.
But GAS now advises that dewatering and gas production of the Nyanda area wells has resumed, following the rain interruptions.
Work was carried out on the Nyanda-8 well to reduce the pump size, allowing for more efficient pumping as the water production declined and gas production increased.
The energy stock explained that the rate of gas flow is now at 6000 cubic feet per day at Nyanda-7 and 42,000 cubic feet per day at Nyanda-8.
Additionally, State Gas has completed a workover of the Serocold-1 well at Reids, installing a liner and allowing the down-hole pump to be set 330m lower than previous level.
The company noted early indications are positive and "suggest that the deeper coals are providing increased water-flow — which is generally associated with better permeability."
State Gas Executive Chairman Richard Cottee said the testing to date supported his belief about the favourable geological setting for gas production at Reid’s Dome.
"I have been expecting that the coals between the natural fractures will cause a degree of initial compartmentalisation until those coals shrink as the gas is drained," he began.
"After shrinkage, the various natural fractures should open up, extend and inter-connect over time, providing additional channels for the gas to enter the wellbore for production," he explained.
"The results to date at Nyanda-4 appear to support this thesis. I am further encouraged, based on water-make as a proxy for enhanced permeability, by the water pumping rates for all of our wells at the Reid’s Dome Project," Richard said,
Shares in State Gas are trading steady at 56.5 cents per share at 12:59 pm AEDT.