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State Gas provides production testing update

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World Coal,

State Gas Ltd has provided an update on its current production testing activities at its Reid’s Dome and Rolleston-West Projects in Central Queensland.

At Rolleston-West, State Gas is targeting the Bandanna Formation coals, which are extensive across large areas of the permit. The potential of these areas is underpinned by Santos’ commercial production of gas from the Bandannas at the Arcadia Valley field to the south-east, and Comet Ridge’s progress towards commercial production from the Bandannas at Mahalo to the north-east.

Following very encouraging results from the drilling of the first two wells in the permit, the company is now working to confirm the potential of the area for gas development by production testing to prove the producibility of the gas from the Rougemont-2 well.

Rougemont-2 pumping has demonstrated it is accessing a large drainage area that augurs well for future gas production. The well is presently flowing gas at a rate of 7500 ft3/d, with a pleasingly steady incline in the gas-to-water ratio. Rougemont-2 has excellent permeability at optimal depth and pressure. The company’s analysis indicates that desorption from coals commenced in mid-January and current gas production is from both desorption and gas dissolved in the water. The company anticipates that optimal desorption will be achieved once a large area of the reservoir has been drained. Following successful pumping at Rougemont-2, it was only as recently as 15 March that all coals were exposed to the well bore.

As previously advised, at Reid’s Dome (PL231), the company is appraising the project for early delivery of new gas supplies into the tight east coast market. Following excellent results at the Nyanda-4 well, State Gas is looking to confirm the size and scope of the development with production tests at additional wells.

Production tests were commenced in November 2021 at Nyanda-8 (a step out well, approximately 2.5 km to the south-west of Nyanda-4), and Serocold-1 (in the central permit area, approximately 6 km north of Nyanda-4). Also at Reid’s Dome, Nyanda-8 is presently producing at 9000 ft3/d, and when requisite stabilised flow rates are reached, a production log test (similar to the one conducted at Nyanda-4 in June 20213 ) will be conducted to ascertain which seams are contributing to the gas flows.

Serocold-1 at Reid’s Dome has also given promising indications of strong gas flow.

In addition, the Nyanda-7 well (approximately 2.5 km to the north of Nyanda-4) is being refitted to production test that well. The test is expected to commence between 17 – 24 March 2022.

The company is presently reviewing its development plans to determine whether it now has sufficient gas to underwrite a pipeline connection via Rougemont to the existing Central Queensland gas trunkline, based on gas production from its Nyanda-4 discovery, combined with its conventional gas at Aldinga at Reid’s Dome.

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Queensland coal news