State Gas Limited (STGSF) Rougemont Production Testing Update Coals Begin Unloading
After several months of careful draw-down to reduce water levels in the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"), State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is pleased to advise that the pilot is beginning to show early signs of the coals unloading their gas.
As of 14 February 2023, gas flow rates have exceeded 50,000 cubic feet per day and are steadily increasing despite water levels being still 170 metres above the uppermost coal seam. Coincident with reaching desorption pressure, the well commenced surging both gas and water, indicating good permeability and strong drive. It is anticipated that, as further water is removed from the well and drained from the coal cleats, gas rates will continue to climb.
Executive Chairman, Richard Cottee advised that the strong early gas flows at this stage of dewatering were an early sign of the success of the lateral well technique at Rougemont 2/3.
"The fact that we are already getting 50,000 standard cubic feet per day flow rates when the coal is still 170 metres underwater is extremely pleasing" said Richard Cottee, Executive Chairman.
"I can't wait to see the flow rates when the water level falls below the coals and gas is more freely liberated", Mr Cottee said.
The Company will keep the market informed of continued progress with production testing results from Rougemont and is now evaluating the location for further step-out wells to support an initial resource estimate for the project.
Accelerating the delivery of pipeline quality gas from Rougemont is a critical part of the Company's strategy to supply the tightening eastern seaboard gas market. Production from Rougemont could be additional to that included in the ACCC's long term supply analysis. Gas from the Company's permits is not restricted by domestic gas reservation requirements, and therefore, has the flexibility of being sold to either local customers or export markets.
Richard Cottee Executive Chairman Phone: 0458 517 850 Email: richard@stategas.com Doug McAlpine Chief Executive Officer Phone: 0488 007 889 Email: doug@stategas.com
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