Rougemont-2 Production Testing Starts

State Gas Limited advises that production testing of the Rougemont-2 well commenced on Monday 15 November 2021.

The Rougemont-1 and -2 wells were the first wells in Authority to Prospects 2062 awarded to the Company last October. The wells, south-west of Rolleston in Central Queensland, were drilled to investigate the potential of the eastern area of the permit for a coal seam gas (CSG) project. The wells targeted the Bandanna coal measures, a well established gas bearing formation producing commercially at nearby Arcadia Valley (operated by Santos) and being prepared for commercial development at Mahalo (operated by APLNG).

Both Rougemont wells intersected approximately 8m of net Bandanna coal, primarily in two seams each more than 2 metres thick. Permeability testing during drilling indicated exceptional permeability in the Rougemont-2 well at 395mD, a result which is very promising for production.

. The Company has now commenced the process of proving this promise, with the first production test for the region commencing yesterday.

Water levels in the well will be slowly reduced at a controlled rate to carefully manage downhole pressures. Initial gas production is expected to be similarly controlled at low rates, and increase over time.

The focus of activities now turns to the Company’s Reid’s Dome Project at the contiguous PL 231.

Production enhancement works will be commenced at the Serocold-1 and Nyanda-8 wells, with sleeving of the Serocold-1 well to improve pump performance, and jetting of the Nyanda-8 well.

Both wells will be returned to production following the completion of their respective works, expected before the end of the month. These works are the next step in progressing the project towards delivering new gas supplies to meet forecast shortfalls in the east coast Australian gas market.