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State Gas (ASX:GAS) returns high gas results from Nyanda-4

Energy
ASX:GAS      MCAP $42.50M
30 December 2019 15:00 (AEST)

State Gas (GAS) has provided an update on early results of production testing at its Reid’s Dome Gas Project in Central Queensland.

As previously advised, production testing at Nyanda-4 in the southern area of the project began on December 4 and early results have been encouraging.

After 13 days of dewatering, State Gas reported gas flowing at a rate of 156 mscf/day (million standard cubic feet per day).

Production volumes at Nyanda-4 have continued to increase steadily during December.

State Gas is pleased to advise that gas production from Nyanda-4 is currently at 436 mscf/day, with the fluid level in the well at 648 metre below surface.

The main coal seams of the Reid’s Dome Beds in Nyanda-4 are located between 396 and 1127 metres, and production is continuing to steadily increase.

The strong gas production results since dewatering commenced at Nyanda-4 are highly encouraging for the Reid’s Dome Project and State Gas’ target 2021 Gas-to-Market strategy.

Within the central area of Reid’s Dome, the new Serocold-1 well was drilled during December and will be placed on production test shortly in the New Year.

Further production updates will be issued in the New Year.

State Gas’ share price is up a steady 4.41 per cent with shares trading for 71 cents apiece at 1:45 pm AEDT.

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