State Gas Limited (STGSF) Rougemont Production Testing Update and Grant of ATP 2069
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is pleased to advise further encouraging results from continued production testing of the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"). Despite the Bandanna coal seams still being covered by 120 metres of water, daily gas production at Rougemont 2/3 is now exceeding 100,000 cubic feet of gas per day. The rapid increase in daily gas production, during the past week since the Company's last announcement (16 February 2023), continues to indicate the excellent permeability of Rougemont's coals and the possibility of extremely high gas production levels from the pilot well.
Executive Chairman, Richard Cottee said "Despite the coals still being subject to approximately 120 metres of water pressure, the gas production rate has increased by 50,000 scft/day in just eight days - quite a step up."
While de-watering activities continue at Rougemont 2/3, the Company is now planning the evaluation of the area surrounding Rougemont for the purposes of establishing a substantial gas reserve. "Bringing substantial new gas supply to market quickly from Rougemont will help alleviate the inevitable Eastern Seaboard gas shortfall," Mr Cottee said.
Award of ATP 2069
In May 2022, State Gas announced that in joint venture with Santos QNT Pty Ltd, a wholly owned subsidiary of Santos Limited (ASX:STO) (OTCMKTS:SSLTY), it had been appointed as preferred tenderer of two substantial highly prospective coal seam gas exploration areas (PLR 2021-1-2 and PLR 2021-1-3). As shown in Figure 1*, these areas are adjacent to the Arcadia Valley gas field and are contiguous with existing project areas held by State Gas and Santos, offering potential development synergies for that area and economies of scale around capital, operations and off-take.
The Company is pleased to advise that ATP 2069 has now been formally granted over the PLR 2021-1-3 area, permitting commencement of early works. Mr Cottee said "The way is now clear to accelerate the exploration and evaluation of ATP 2068 (previously granted) and ATP 2069 in conjunction with our joint venture partner Santos. Those strategically located tenements present a unique opportunity to bring online another substantial high quality gas resource in a known gas producing region that is well located to infrastructure at a time when new gas supply is critical," Mr Cottee said.
Earlier this week, the importance of this CSG province was highlighted with the announcement of federal environmental approval for 116 new CSG wells in the Bandanna Coal Formation within the neighbouring Arcadia Valley gas field.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/X9FQ5975
Doug McAlpine Chief Executive Officer Phone: 0488 007 889 Email: doug@stategas.com Richard Cottee Executive Chairman Phone: 0458 517 850 Email: richard@stategas.com
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