Oil and Gas News

Reid’s Dome progress uplifts State Gas position

State Gas is confident that the Reid’s Dome gas project in Queensland will be online sooner than expected after promising results during its phase two program.

The company outlined that the primary objective of the phase two program was to appraise the Nyanda area for early development following the strong performance of the Nyanda-4 coal seam gas (CSG) well at the end of last year.

State Gas highlighted that it drilled two step out wells 2.5km to the north (Nyanda-7) and southwest (Nyanda-8) of the Nyanda-4 well, to guide the development area.

As a result, the drilling confirmed the widespread presence of gas-bearing coal seams and significant net coal within the Nyanda area, with all three wells intersecting good quality coals with seams of similar thicknesses and depths and evidence of open fractures.

State Gas is now embarking on production testing of the Bowen Basin wells, starting with Nyanda-4 well being returned to production.

Following gas flow recommencing immediately at the well, it is expected to take time to recover performance, with the well’s current gas flow rate at 57,500 standard cubic feet per day.

In addition, State Gas has also completed Nyanda-7 drilling and has reported that the well is currently being dewatered to lower wellbore pressure to enable the gas to be produced from the coals.

At Nyanda-8, the services rig is currently operating to install the pump to allow dewatering for gas production.

State Gas stated that all three CSG wells in the Nyanda area are expected to be dewatering by early next week.

Executive chairman Richard Cottee commented: “I am very pleased with the early recommencement of gas flows at Nyanda-4, particularly as we have only just brought the fluid level in the well below the coal seams. I look forward to providing updates on production at the latest wells, Nyanda-7 and Nyanda-8, in due course.”