- State Gas (GAS) has seen its share price rally after announcing a series of updates on its Reid’s Dome project in Queensland
- The oil and gas company has begun production testing of gas flow rates at three wells in the Nyanda area within the project
- GAS said Nyanda-4 has hit 249,000 cubic feet per day, while Nyanda-7 is producing 4,990 cubic feet per day and Nyanda-8 is producing 21,460 cubic feet per day
- The Chairman of State Gas also said the gas flow rates are steadily increasing across Nyanda as de-watering continues
- Following his comments and the recent project updates, shares in GAS have increased more than 10 per cent
- Company shares are currently trading up 11 per cent at 59.5 cents per share
State Gas (GAS) has seen its share price rally after announcing a series of updates on its Reid’s Dome project in Queensland.
The oil and gas company recently began pilot production testing of gas flow rates at three wells in the Nyanda area of Reid’s Dome.
The pilot testing also extends to the well’s water productivity rates. High water production and high gas saturation suggest strong gas rates could follow.
As of Monday, State Gas said the Nyanda-4 well had hit 249,000 cubic feet per day, while the Nyanda-7 well was producing 4,990 cubic feet per day and the Nyanda-8 well was producing 21,460 cubic feet per day.
In terms of water production, the company said Nyanda-7 has the highest water productivity and had free gas at the crest, while Nyanda-8 and Nyanda-4’s water production rates were similar and not aided by free gas.
Additionally, in a letter released to shareholders today, the company’s Chairman said the gas flow rates are steadily increasing across Nyanda as de-watering continues.
“It would be an understatement to say that the results of our Phase 2 programme have been encouraging,” Chairman Richard Cottee wrote.
“The gas flow rates are steadily increasing as the de-watering continues,” the Chairman added.
Following his comments and the recent project updates, shares in GAS have increased more than 10 per cent.
State Gas shares are currently trading up 11 per cent at 59.5 cents per share at 3:01 pm AEDT.