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State Gas starts production testing

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World Coal,

State Gas Ltd has recently commenced the third of its current production tests at the Serocold-1 well.

The Serocold-1 production test is part of the company’s programme of work to confirm the commerciality of its Reid’s Dome Project (PL 231) in Central Queensland for delivery of new gas supplies into the east coast market. Following highly successful production testing of the Nyanda4 well earlier this year, State Gas undertook jetting at the nearby Nyanda-8 well in November 2021, and has just completed sleeving of the Serocold-1 well to enhance the wells production performances. The Nyanda-8 production test was commenced on 28 November 2021, and 5 December 2021 saw the pumps at Serocold-1 turned on.

As announced on 17 November 2021, the company is also production testing the Rougemont-2 well at its contiguous Rolleston-West Project (ATP 2062). The Rougemont-1 and -2 wells are the first wells drilled in ATP 2062, which was issued to the company in October 2020. The wells targeted the Bandanna Formation coals – currently in commercial production to the south-east at the Santos operated Arcadia Valley and under development at the Comet Ridge operated Mahalo to the north-east – in the eastern area of the permit. The drilling results confirmed the presence of good quantities of gas at or near pipeline quality and the current test to is to confirm its producibility.

Water levels are being drawn down slowly to carefully control the reduction in downhole pressures to optimise production. It is expected that the tests will continue for several weeks before gas flows commence.

“I am pleased that we have successfully completed the rig activities on all three wells and have moved into the production phase” said the company’s Executive Chairman, Richard Cottee. “The recent rains have presented challenges but the team has worked well to juggle the schedule and minimise delays. Remote control of the production means we are now much less vulnerable to whatever La Nina throws at us.”

“The Reid’s Dome gas contents are high – an average of 13.75 m3/t at Nyanda-4 3, so I am looking forward to seeing the results these new production tests,” concluded Cottee.

State Gas will continue to provide updates as activities progress.

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