State Gas flow tests two coal seam gas wells at Reid’s Dome

State Gas Ltd., Brisbane, successfully flow tested two coal seam gas wells of the Reid’s Dome project in PL 231 in Queensland’s Bowen basin.

Nyandra-4, in the southern portion of the permit, is flowing gas above 60,000 cu ft/d only 4 weeks after initial pumping at the well. Water production is very low which bodes well for development economics, the company said.

A production logging program will be carried out to determine the contribution of the various coal intervals in the well when gas flow rates stabilize.

The second well, Serocold-1 about 6.2 km to the north, achieved constant gas flow within 1 week of being placed on pump. Water production is very low.

Production to determine the potential of the upper 54% of the coals in the well will continue. The remaining coals are below the level of the pump because of obstructions in the well. State Gas said that future well completions will be designed to avoid this issue.

In addition to the CSG program a third well, Aldinga East-1A, which lies 12 km north of Nyandra-1 within PL 231, has been flow tested from the shallow intra Cattle Creek conventional sandstone gas reservoir. Gas flowed at 363,000 cu ft/d, indicating potential for complementary development to the Reid’s Dome CSG field.

State Gas executive chairman Richard Cottee said the company is close to achieving all the production data required to meet the objective of commissioning an independent resource estimate for Reid’s Dome.

Reid’s Dome field was originally discovered in 1955 about 30 km southwest of Rolleston. State Gas owns 100% of the permit which lies 50km from the Queensland Gas pipeline and the interconnected Australian east coast gas grid.

State Gas’ work since taking up the permit and drilling the first CSG well in 2018 has established that Permian-age coal seams within Reid’s Dome are extensive across the permit. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 with the drilling of Aldinga East-1A.

The plans to progress a phased appraisal program in parallel with permitting for an export pipeline and development facilities to rapidly deliver the gas to market.