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State Gas (ASX:GAS) - Executive Chairman, Richard Cottee - The Market Herald
Executive Chairman, Richard Cottee
Source: The Courier Mail
  • State Gas (GAS) has reported an exponential increase in gas flow at the Nyanda-4 well of its Reid's Dome Gas Project in central Queensland
  • Since late last week, the well has been flowing at rates exceeding peak production levels seen during testing in January
  • The increase in production follows the installation of customised pumping equipment designed to suit local conditions
  • The success of the Nyanda-4 well provides further support for the commercialisation of Reid's Dome, in a region where the gas market is expected to shrink over the next few years
  • State Gas closed 11.76 per cent in the green for 57 cents each

State Gas (GAS) has reported an exponential increase in gas flow at the Nyanda-4 well of its Reid's Dome Gas Project in central Queensland.

Located approximately 50 kilometres southwest of Rolleston and 50 kilometres west of the Queensland Gas Pipeline, the wholly-owned Reid’s Dome Project sits within the prolific Bowen Basin on the apex of the Springsure-Serocold Anticline.

Since late last week, the Nyanda-4 well has been flowing at rates that exceed peak production levels seen during testing in January, with overnight rates of more than 240,000 standard cubic feet per day.

State Gas attributed the significant jump in production to the installation of customised pumping equipment from Canada, which has been designed specifically to suit the local conditions at Reid's Dome.

Richard Cottee, Executive Chairman of State Gas, said he is pleased with the performance of the Nyanda-4 well.

"Seeing the well improve gas production and now exceed previous flow rates using the customised pumps is very encouraging for the development of the whole Reid’s Dome gas field," he added.

Nyanda-4 was first drilled by State Gas in late 2018, and was the first coal seam gas well within the Reid's Dome Project. It lies to the southern region of the property, and intersected 40 metres of net coal along with a further 25 metres of carbonaceous shales.

A Phase 1 exploration and appraisal program was then undertaken, which confirmed the widespread presence of coal seam gas at Reid's Dome. A major part of this program was the production testing of the Nyanda-4 well, which began in December 2019.

However, progress at the project was interrupted by technical problems, leading to the cessation of pumping. Following an investigation into the cause and the installation of the new pumps, production testing resumed in July this year.

State Gas closed 11.76 per cent in the green for 57 cents each.


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