State Gas announces resource estimates

Highlights

• Exceptional permeability of 395mD in primary Rougemont-2 seam.
• Gas content for the two primary seams in the Rougemont-1 and Rougemont-2 wells is a highly commercial 5.15 – 6.20 m3/t dry ash free.
• The gas in the relevant seams in both wells is more than 96% methane – pipeline quality once dehydrated.
• Production testing of Rougemont-2 well to commence shortly.
• Contingent resources estimated for the East Bandanna Fairway within 100%-owned Rolleston-West Project (ATP 2062) of 53 PJ 1C, 91 PJ 2C, 161 PJ 3C.
• Contingent Resources for the 100%-owned Reid’s Dome Project (PL 231) also estimated at 74 PJ 1C, 126 PJ 2C, 223 PJ 3C.

These latest results follow on from the exceptional permeability results received for the Rougemont-2 well, where the primary seams, one 2.8 m thick, the other 2.4 m, were found to have permeability of an outstanding 395mD, and very sound 25mD, respectively. These results, determined by drill stem testing following drilling, are extremely promising for production, suggesting early and comprehensive drainage of the gas in the seams.

The Rougemont-1 and -2 wells, the first wells in ATP 2062 awarded to the company October 2020, were drilled to investigate the potential of the eastern area of the permit for a coal seam gas (CSG) project. The wells, approximately 2.7 km apart, targeted the Bandanna coal measures, a well-established gas bearing formation producing commercially at nearby Arcadia Valley (operated by Santos) and being prepared for commercial development at Mahalo (operated by APLNG).

The Rougemont-1 and -2 wells were drilled as coreholes, with samples of the coals sent for laboratory analysis of gas content and composition. The wells were also logged to identify coal thickness, and permeability tested.

Data from the wells indicated strong correlation between the wells, with laterally continuous coal seams of approximately 8 m net coal across the area.

The laboratory analysis of the coal samples has indicated good gas contents in the coals. The primary seams in Rougemont-2 were measured as 6 and 5.15 m³/t dry ash free, while the correlative seams in the deeper Rougemont-1 were 6.20 and 6.18 m³/t dry ash free. These results more than justify production testing and planning is well underway for a test at the Rougemont-2 well.

The final gas composition results are also a significant boost for the commerciality of the project: the gas from both wells was in excess of 96% methane. Once dehydrated, the gas from this area will be of pipeline quality, which will enable processing costs to be kept to a minimum.

The receipt of the gas content results has enabled an estimate of the contingent gas resource in the east Bandanna fairway within the permit. The estimated contingent resources relate to the coal seam gas in the eastern area of the permit only, and do not include the conventional gas prospects in the permit, or the unexplored areas to the west of the Rougemont East Bandanna CSG Fairway. These areas are expected to add to the resources position of the company when assessed.

Reid’s Dome

The company has also obtained an estimate of the contingent resources in its Reid’s Dome Project, PL231.

Executive Chairman, Richard Cottee, stated: “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.”

“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,” he added.

“I am very much looking forward to production testing Rougemont-2, and, in due time, a highly commercial project from the East Bandanna Fairway.”

“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.”.

“These volumes gas will provide a very much needed supply boost into the east coast gas market, which, as the ACCC has identified, is facing the prospect of real shortages.”

“With nearly 400 PJs of contingent resource in contiguous projects so close to the transmission pipeline network, State Gas is very well placed to leverage the looming national gas shortage.”

The Rolleston-West Gas Project is contiguous with the company’s Reid’s Dome Gas Project and located 30 km from major pipeline infrastructure interconnected with the east coast gas transmission network and the export LNG facilities at Gladstone. Neither the Rolleston-West or Reid’s Dome Gas Projects are subject to domestic gas reservation restrictions.

Read the article online at: https://www.worldcoal.com/cbm/01092021/state-gas-announces-resource-estimates/