Oil and Gas News

State Gas proves commercial potential of well

State Gas has advised that the Nyanda-4 well, part of its Reid’s Dome project in Queensland, has provided exceptional results, producing 620,000 cubic feet.

The company is currently undertaking production testing of three coal seam gas (CSG) wells in the Nyanda area at Reid’s Dome in order to appraise the area for early development.

The Nyanda-4 well was drilled in late 2018 and was placed on test for two periods last year.

However, in each test, promising gas production was interrupted by pump breakdowns after six and nine weeks respectively.

The company has stated that production in the current test has exceeded previous rates achieved, on both a daily production and instantaneous basis.

In addition, State Gas continues production testing at the Nyanda-7 and Nyanda-8 wells, which were drilled in 2020.

Nyanda-7 is experiencing strong water recharge, indicating good permeability, although slowing the progress in reducing downhole pressures aimed at accelerating gas production.

Despite this, the company believe this is in a positive early sign with gas production at the well commencing with 5000 cubic feet (cf/d) per day recorded.

Nyanda-8 gas flows also continue to build, producing 31,000 cf/d over 24 hours on Monday.

Executive chairman Richard Cottee said the company has finally “cracked the code” at Reid’s Dome.

“The rates we are seeing from Nyanda-4 are well above the indicative threshold for a commercial well (commonly taken to be around 100,000 cf/d), and I am confident the area will prove commercial,” Cottee said.

“The fact that the well has come back to exceed previous rates so quickly and emphatically is great news – this suggests the well hasn’t been damaged by stoppages in production, as is so often the case with CSG wells. The implication is that Reid’s Dome can supply intermittent volumes, enabling it to optimise sales into a volatile market to achieve best pricing. This is very exciting.”

In addition, State Gas also advises that the Secure Well Services Rig 2 was mobilised to site on March 15, 2021 to undertake a workover at the Serocold-1 well.

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