State Gas Limited (ASX:GAS) Quarterly Activities Report
Quarterly Activities ReportBrisbane, April 30, 2021 AEST (ABN Newswire) - The March 2021 Quarter saw the beginning of a defining half-year for State Gas (
ASX:GAS). In January we commenced production testing the newly drilled Nyanda-7 & Nyanda-8 wells, and re-established production testing at Nyanda-4.
Quarter Highlights:
- Nyanda-4 achieving up to 700,000 standard cubic feet of gas production per day
- Encouraging gas production levels at Nyanda-7 and Nyanda-8
- Commencement of civil works for drilling of Rougemont wells on new Rolleston-West Project (ATP2062)
Logs of the Nyanda-7 provide further positive data for future gas production, with approximately 38.2 metres of net coal confirmed (compared with 30.9 metres at Nyanda-4), with numerous open fractures apparent through the coal seams. Since the commencement of production testing the well has produced nearly twice as much water as did Nyanda-4 during the same period of its initial testing, with the pathways through the coals created by the open fractures the likely explanation for this enhanced production. These fractures are expected to enhance permeability and future gas production. With no offset wells to help the de-watering process (as is common for early-stage production tests) we expect Nyanda-7 will take longer for significant gas flows to eventuate. Nonetheless, it is currently producing approximately 5,000 cubic feet(cft) /day. As de-watering commonly takes between 3-6 months, we are anticipating that the well will begin to show its worth by the end of this financial year.