Sign up Australia
Proactive Investors - Run By Investors For Investors

State Gas' Bowen Basin wells flow as further drilling planned

Similar reservoir pressure could indicate connectivity between wells.
Picture of flames from well flowing gas
Reprocessing of seismic survey data to assist in developing 2018 drilling campaign

State Gas Ltd (ASX:GAS), has had gas flows from three of its wells situated in Queensland’s Bowen Basin.

The conventional gas developer has successfully completed gas flow-testing, sampling and analysis from the wells which are part of PL 231.

The three wells flow-tested and sampled were Primero 1, Aldinga North 1 and Reid’s Dome-4.

Gas demand outstripping supply on East coast of Australia

This development comes at a time when gas demand is outstripping supply on the east coast of Australia, and data indicates that the gap between supply and demand is expected to widen in coming years.

Wells previously shut in for up to 25 years

Drilled between 11 and 25 years ago, State Gas' existing wells are located within the northern half of PL 231.

The similar reservoir pressure (166 – 167psig) and gas composition results for all the wells could indicate that the reservoir is connected between each of the wells tested, which would be a positive indicator for future gas production.

The gas flow-testing and sampling conducted in mid-December relates to the shallow Cattle Creek formation, which commences approximately 130 metres from surface.

Upcoming catalysts

Given the sampling did not include gas targets within the deeper Reid’s Dome Beds situated beneath the Cattle Creek horizon there may be scope for further exploration success.

The company is reprocessing historical seismic survey data with the results due in February 2018.

This data will be used to assist the company in selecting well sites for the 2018 drilling campaign.

View full . profile View Profile

Proactive Investors Australia Timeline

Related Articles

picture of text
July 28 2017
Dotdigital has been named as one of the fastest growing companies in Europe
Bookshelf
October 25 2017
After being rejected by several publishers, Bloomsbury was the one which decided to take a punt on Harry, and what a magical decision it proved to be
mobile phone
Mon
Tremor is already in profit a year ahead of expectations and is a blueprint for similar acquisitions in the future.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use