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.
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.