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State Gas Limited (ASX:GAS) Restart of Production Testing at Reids Dome

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Brisbane, Australia, July 20, 2020 - (ABN Newswire) - State Gas Limited (ASX:GAS) is pleased to announce the recommencement of production testing at the Company's 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland. Gas production testing has recommenced at both the Nyanda-4 the Serocold-1 wells.

State Gas is appraising the potential for the Reid's Dome Beds in PL231 to host a significant coal seam gas project.

Production tests of the Nyanda-4 and Serocold-1 wells in late 2019 - early 2020 produced very encouraging early results that were interrupted by pump issues in both wells. As announced on 2 June 2020, State Gas undertook an investigation of those issues and arranged for the manufacture in Canada of customised replacement pumps designed for the conditions. The pumps arrived in Australia early this month.

The new pumps have now been installed into the Serocold-1 and Nyanda-4 wells. Dewatering recommenced at Nyanda-4 on 16 July and at Serocold-1 on 18 July.

Nyanda-4 started producing measurable quantities of gas (10mscf) after only three days of pumping water. At Serocold-1 the casing pressure has increased after 1 day of pumping, a promising indication for gas production. The water levels are being drawn down slowly to maximise producibility with gas expected to flow once downhole pressures are sufficiently lowered.

Aldinga East-1A

As announced on 13 November 2019, a new conventional gas pool was discovered during the drilling of the Aldinga East-1A well. Subsequent tests of the gas sand failed to achieve gas flow, suggesting a water block (caused by the drilling fluid) has impeded flow. The Company has been monitoring a pressure build up at the well for several months and has now conducted a productivity test. This test has produced gas, indicating some dissipation of the water block and confirming the gas pool. The well will continue to be monitored for ongoing gas pressure build up and further testing will be considered.

State Gas is looking forward to announcing further positive results from Reid's Dome and will provide further updates in the near future.

About State Gas Limited:

State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.


Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241

Richard Cottee
Executive Chairman
Phone: 0458 517 850


State Gas Limited

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