State Gas has hit an important milestone with the first well being spudded as part of its phase two exploration and appraisal program at the Reid’s Dome gas project, Queensland.
The Nyanda-7 well was spudded on Tuesday morning as part of the company’s 100 per cent owned Reid’s Dome gas project on PL231 in the Bowen Basin.
The phase two exploration and appraisal program is being undertaken to implement the company’s strategic plan to bring gas to market to meet near term forecast shortfalls on the east coast market.
With a focus on the area around the highly successful Nyanda-4 well, the program has been designed to provide additional data to secure certified reserves booking and enable field development planning and infrastructure design for commercialisation of gas in the Reid’s Dome coal beds in the area.
The Nyanda-7 well is being drilled as a step out well to Nyanda-4, from which gas was produced at rates approach 500,000 cubic feet per day.
The company plans to log the new well once it reaches total depth of 1200m, and then commence production testing.
In addition, State Gas highlighted that Nyanda-7 drilling will be followed by at least three further production wells on PL231, with timing of the further wells dependent on weather.
The company is confident that the drilling of at least two wells and production testing of three wells will happen before the wet season.
State Gas is also planning to drill two core holes at its new Rolleston-West project in the new year, with the wells to investigate the gas potential of the Bandanna coals in the eastern region of ATP 2062.