The company reported that it was aiming to commence phase two drilling by mid-November, which already has funding in place.
Phase two will see additional data obtained to secure certified reserves booking and enable field development planning and infrastructure design for early commercialisation of the Nyanda area.
The next phase will involve drilling production testing of at least four step out wells from Nyanda-4, with the possibility of two optional additional wells to further delineate gas resources across PL 231.
“A key objective is to obtain data on appropriate well spacing for field development via monitoring downhole pressures from several nearby wells producing simultaneously,” the company stated.
The current production test at Nyanda-4 has been suspended until the new wells have been drilled so that communication with the nearby producing wells can be monitored.
While phase two will focus on the nyanza region of PL 231, State Gas reported that gas flow rates continued to increase steadily at the Serocold-1 well.
However, damage to the well bore has limited the depth at which the pump could be placed, meaning 47 per cent of the targeted coal seams below the pump will not contribute to the test.
The company has suspended the Serocold-1 flow test in order to free up field operations to focus on the new drilling campaign.
In addition, State Gas has planned for an initial gas well to be drilled with new acreage awarded to the company in the recent Queensland petroleum land release for proposed authority to prospect 2062 Rolleston-West.
The proposed well, to be named Rougemount-1, will investigate the highly-prospective Bandanna coals in the eastern region of the acreage. The Rougemount-1 well will facilitate down-hole logging to determine coal thickness and depth of seams, along with permeability testing of seams.
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