Itsagas has taken the time to look at what Mr Richard Cottee has...

Itsagas has taken the time to look at what Mr Richard Cottee has said over the past year ..
Some think Gas is an “empty vessel with no gas”
Think again:
It takes years to prove up a Commercial gas field.
I hold TEG shares..

Reid’s Dome Production Testing UpdateState Gas Limited ACN 617 322 488PO Box 10348 BRISBANE QLD 4000ASX RELEASE18 February 2021State Gas Limited (ASX: GAS) is pleased to provide its weekly update on production testing activities at its 100%-owned Reid’s Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland.As advised on 27 January 2021, State Gas is undertaking production testing of three coal seam gas (CSG) wells in the Nyanda area at Reid’s Dome (refer Figure 1) in order to appraise that area for early development.Gas production continues strongly at the Nyanda-4 well. Growth in the production rate shows good consistency with prior testing of the well. Current rates are around 100,000 cubic feet a day, which is ahead of previous comparable production tests at Nyanda-4 based on the dewatering timeframe.Dewatering of the new Nyanda-————-

State Gas Executive Chairman, Richard Cottee, expressed his delight: “Last week I advised we had ‘cracked the code’ at Reid’s Dome and these results truly confirm it.”“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.” Mr Cottee said.“In addition, 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”, Mr Cottee added.State Gas Limited ACN 617 322 488PO Box 10348 BRISBANE QLD 4000ASX RELEASE16 March 2021 1 27 January 2021, 3, 11 & 18 February 2021, 8 & 10 Mar————————

-Executive Chairman, Richard Cottee, said that he was very encouraged by the results so far and their consistency.”These results suggest good consistency across the extensive Bandanna coal measures in this region of the Rolleston-West Project.”“Assuming further positive results from the wells, a gas project of significant scale may be possible in this area, to complement our neighbouring project at Reid’s Dome,” Mr Cottee said.—————————

Analysis of drill-stem test data confirms excellent permeability. Additionally, initial Rougemont gas analysis received yesterday indicates near-pipeline quality gas. Field values of gas content of the coals indicate the laboratory-determined numbers should exceed the threshold for commercial volumes. Final gas contents from the laboratory will be available in due course.Executive Chairman, Richard Cottee, said that the results of the analyses indicated a high likelihood of a viable project at the Rolleston-West Gas Project.”The results of the drill stem tests at Rougemont-2 have established the presence of excellent permeability.”“In fact the results of permeability testing in the well remind me of my early days at QGC. The permeability of the coals in the ‘nose’ structure at our Rougemont-2 area rivals that of QGC’s legendary Undulla Nose in the Surat Basin to the south, which was first drilled in 2000.”“This comparison, together with the correlations with other well and coal exploration data across the area, gives me great confidence of an exciting new era for the Company”, Mr Cottee said.———————

The PLT results demonstrated that good flows came from both near the top of the coals (with the top producing interval between 400m to 600m), and importantly, good flows from the bottom section of the well below 1150m.The confirmation of gas production at greater depths is commercially important in confirming not just more productive zones in the Reids Dome Beds, but also a much larger productive area. The coal seams dip down away from the crest of the Dome; and if the depth cut off for productive coals is deeper a much more expansive area of the Dome can be expected to produce. This means significantly more gas reserves will be available to the Project than if the coals were limited to typical CSG depths.“This is unambiguously good news,” commented Mr Richard Cottee, Executive Chairman of the Company.“These results prove conclusively that we can produce economically at depths exceeding 1,000m naturally, unaided by any form of stimulation. We can now show that coals at these depths in Reid’s Dome need to be included in assessments of the field’s production potential, right down the full depth of the wells.”—————

Executive Chairman, Richard Cottee, stated that these latest results from the Rougemont wells were unambiguously good news.”We already knew we had good coal thickness and absolutely outstanding permeability at Rougemont-2. Now, with these gas content numbers, we have every expectation that the area will support a very commercial project,” he said.“This is particularly so with the gas composition: this is pipeline quality gas, just needing dehydration and compression to enter the network – the least processing possible,” he added.“I am very much looking forward to production testing Rougemont-2, and, in due time, a highly commercial project from the East Bandanna Fairway”, he said.He also commented on the new Resource estimates for the projects.“I am also very pleased with the Contingent Resource estimates received for both Reid’s Dome and Rolleston-West. I have always had confidence in the ‘size of the prize’ at these Projects, and now see my confidence confirmed”.“These volumes gas will provide a very much needed supply boost into the east coast gas market, which, as the ACCC has identified, is facing the prospect of real shortages3.”“With nearly 400PJs of Contingent Resource in contiguous projects so close to the transmission pipeline network, State Gas is very well placed to leverage the looming national gas shortage.” Get Outlook for iOS