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State Gas announces success at second Rougemont gas well

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World Coal,

State Gas Ltd has announced that its second Rolleston-West well, Rougemont-2, has intersected gas-bearing Bandanna coal measures very similar to the coals identified during drilling at its Rougemont-1 well in May in Central Queensland. The strong correlation of the results of Rougemont-1 and 2 validate the company’s hypothesis that the extensive Bandanna Formation within the Rolleston-West Gas Project (ATP 2062) hosts significant volumes of gas.

The Rougemont-2 well, approximately 2.7 km north west of Rougemont-1, was spudded on 29 May and reached total target depth of 540 m at 8.00 am on 5 June 2021. As at the Rougemont-1 well, core samples have been taken from the well, the well geology has been logged, and further testing is currently underway.

Both Rougemont wells intersected approximately 8 m of net coal, hosted in a number of seams with the thickest seams in excess of 2 m (2.8 m at Rougemont-2 and 2.2 m at Rougemont-1). The coal measures in Rougemont-2 were encountered at approximately 295 metres depth (i.e. approximately 200 metres shallower than at Rougemont-1).

Gas was observed bubbling from the coal samples taken from both wells, and field values for the gas content of the coals from both are similar. While final gas contents will be determined by laboratory analysis in due course, the field values suggest the gas content is likely to be within expectations for a commercial development. The visual appearance of the coals from each is also similar.

These similarities between the results from the wells so far suggest good consistency across the Bandanna coal measures at a range of depths. The Bandanna coal measures are extensive throughout this eastern arm of the Rolleston-West Gas Project, and correlate with the Bandanna coals at the Arcadia Valley Coal Seam Gas project (Santos/GLNG) and under development at Mahalo (Santos/APLNG/Comet Ridge).

Executive Chairman, Richard Cottee, said that he was very encouraged by the results so far and their consistency.

“These results suggest good consistency across the extensive Bandanna coal measures in this region of the Rolleston-West Project.”

“Assuming further positive results from the wells, a gas project of significant scale may be possible in this area, to complement our neighbouring project at Reid’s Dome,” Cottee said.

The Rolleston-West Gas Project is contiguous with the company’s Reid’s Dome Gas Project and is located 30 km from major pipeline infrastructure interconnected with the east coast gas transmission network and the export LNG facilities at Gladstone.

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Queensland coal news