Oil and Gas News

State Gas kick starts Rolleston-West drilling

State Gas project

State Gas has commenced drilling of the first wells at the Rolleston-West gas project in Queensland.

Rougemont-1 was spudded at 9pm on May 14, 2021, with the well reaching 75m today.

The well is the first of two planned wells being drilled to evaluate the highly prospective Bandanna coals in the eastern arm of the new Rolleston-West permit, which was granted to the company by the Queensland Government late last year.

The Bandanna Formation is well established as a host of commercially viable coal seam gas, producing at the Arcadia Valley (Santos/GLNG) and under development at Mahalo (Comet Ridge/Santos/APLNG) at similar distances to the south-east and north-east of ATP 2062 respectively.

The company reported that Rougemont-1, with a planned total depth of 800m, is targeting gas-bearing coals between approximately 500m and 780m.

Located on the crest of a plunging nose in the formation, the coals are expected to host gas content and permeability comparable to the analogue fields.

The wells will also confirm coal thickness, gas content and the permeability of the coals in the area of ATP 2062.

The data will provide valuable information as to the potential of the area, to be confirmed through subsequent production testing of the wells. Once the initial testing processes are completed, the wells will be suspended, awaiting subsequent production testing of the wells.

Executive chairman Richard Cottee said the spud of the Rougemont-1 well was a milestone for the company.

“This is the first well in the new acreage awarded by the Queensland Government to State Gas last year, increasing the Company’s potential many-fold. These core holes are designed to help quantify that increased potential,” he said.

“The new Rolleston-West permit covers an area of 1414km2 adjacent to PL231 in central Queensland – if all goes well, we have the makings of a major gas development combining the gas from both projects.

“Knowledge about the potential of Rolleston-West will be vital in informing the development planning for Reid’s Dome, enabling the optimum scaling and location of facilities and infrastructure. We will be able to commence at Reid’s Dome knowing that Rolleston-West gas will come in, bringing additional cashflow and economies of scale for the benefit of both project areas.”

Cottee further highlighted that the synergistic nature of this development coming at the time of a predicted gas shortage, targeted for 2023, will enhance its economics and increase the avenues available for financing such development.