State Gas has confirmed gas-bearing Bandanna coal measures at its second Rolleston-West well, Rougemont-2, located in Central Queensland.
The company advised that the coal encountered are similar to those identified at its Rougemont-1 well.
The strong correlation of the results of Rougemont-1 and 2 validate the company’s hypothesis that the extensive Bandanna Formation within the Rolleston-West gas project host significant volumes of gas.
The Rougemont-2 well, 2.7km north west of Rougemont-1, was spudded on May 29 and reached total target depth of 540m at 8am on June 5.
However, as Rougemont-1, core samples have been taken from the well, the well geology has been logged, and further testing is underway.
Both Rougemont wells intersected 8m of net coal, hosted in a number of seams with the thickest seams in excess of 2m.
Gas was observed bubbling from the coal samples taken from both wells, and field values for the gas content of the coals from both are similar.
The company stated that while gas contents will be determined by laboratory analysis in due course, the field values suggests the gas content is likely to be within expectations for a commercial development.
Executive chairman Richard Cottee said he was very encouraged by the results so far and their consistency.
“These results suggest good consistency across the extensive Banana coal measures in this region of the Rolleston-West project,” he said.
“Assuming further positive results from the well, a gas project of significant scale may be possible in this area, to complement our neighbouring project at Reid’s Dome.”
The Rolleston-West project is contiguous with the company’s Reid’s Dome gas project and is located 30km from major pipeline infrastructure, with the east coast gas transmission network and the export LNG facilities in Gladstone.