Oz State Gas Strikes Gas at Reid’s Dome

Brisbane-based junior State Gas has encountered gas at its Primero West-1 well at the Reid’s Dome Gas Project in Queensland, Australia, within the Cattle Creek Formation, the company said November 13.

“Based on the Company’s seismic reprocessing efforts during 2018, the Primero West-1 well was located and designed to test the Cattle Creek Formation within PL 231 and is 100%-funded by State Gas Limited in accordance with the requirements of the Joint Venture Operating Agreement,” it said.

State Gas is the sole operator and 60% owner of the Reid’s Dome project.

The Primero West-1, which was spudded on November 10, will be plugged and abandoned at the completion of drilling, logging and flow-testing on the basis that any full-field development of the Cattle Creek Formation within PL 231 will require additional drilling and a focused seismic program to optimise the locations of production wells, the company said.

Following the completion of activities at Primero West-1, the drill rig, Silver City, will be mobilised to the Nyanda-4 site approximately 13.5 kilometres to the south, it said.

The Nyanda-4 well has a planned depth of 1,000 metres and is a jointly funded well in accordance with the terms of the Joint Venture Operating Agreement. As such, State Gas is responsible to meet its 60% of the costs.

In the event of successful identification of significant coal seam gas and/or conventional gas at the Reid’s Dome gas project, the east coast gas pipeline network is located about 50 kilometres to the north and east of the project area, with a granted pipeline survey licence currently in place.