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State Gas positive about Aldinga

The company said it had encountered up to 14 m of net coal in its Aldinga East-1A between 560 m and its total depth of 884 m, while a conventional gas pool was also discovered in 9 m of gas sands in the Cattle Creek formation.

A total of 18 m of gas sands were intersected in the well and State Gas intends to return to the site in the coming weeks to conduct drill stem tests of the gas pool and gas sands in order to obtain gas samples and indicative flow rates.

State Gas Chair Richard Cottee said the discovery of both CSG and conventional gas targets had the company reassessing the proposed design for follow up wells.

“Our Target 2021 Gas-to-Market strategy has been validated by the results received from Aldinga East-1A to date,” Mr Cottee said.

“The fortunate combination of both CSG and conventional gas will help underpin our early Gas-to-Market opportunity, and the longer-term economics of Reid’s Dome.”

Mr Cottee said the increasing commercialisation of CSG and the tightening of domestic gas prices presented an opportunity for the project.

“The success at Aldinga East-1A, along with the results from Nyanda-4 approximately 12 km south within PL 231 and the extensive seismic data processing completed this year, provide us even greater confidence in proving-up an extensive gas project at Reid’s Dome, well-timed to help address the gas shortage in the east coast market,” said Mr Cottee.

The Reid’s Dome project is located in PL 231 in Queensland’s Bowen Basin.

State Gas is the 100 per cent owner and operator of the asset, with a Queensland court finding in its favour after a dispute over equity with Dome Petroleum Resources earlier this year.

For more information visit the State Gas website.

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