Production testing has recommenced at State Gas Limited-owned Reid’s Dome Gas Project in the Bowen Basin in Central Queensland, following the installation of new custom pumps able to handle the site conditions which led to the failure of the original pumps. 

Gas production testing has recommenced at both the Nyanda-4 and the Serocold-1 wells.

State Gas is appraising the potential for the Reid’s Dome Beds in PL231 to host a significant coal seam gas project.

Production tests of the Nyanda-4 and Serocold-1 wells in late 2019-early 2020 produced very encouraging early results that were interrupted by pump issues in both wells. 

As announced on 2 June 2020, State Gas undertook an investigation of those issues (abnormal swelling of the elastomer in the stators Asian-sourced pumps, likely the result of downhole temperature and pressures) and arranged for the manufacture in Canada of customised replacement pumps designed for the conditions. The pumps arrived in Australia in early July 2020.

The new pumps have now been installed into the Serocold-1 and Nyanda-4 wells. Dewatering recommenced at Nyanda-4 on 16 July and at Serocold-1 on 18 July.

Nyanda-4 started producing measurable quantities of gas (10mscf) after only three days of pumping water. 

At Serocold-1 the casing pressure has increased after one day of pumping, a promising indication for gas production. The water levels are being drawn down slowly to maximise producibility with gas expected to flow once downhole pressures are sufficiently lowered.

Aldinga East-1A

As announced on 13 November 2019, a new conventional gas pool was discovered during the drilling of the Aldinga East-1A well. Subsequent tests of the gas sand failed to achieve gas flow, suggesting a water block (caused by the drilling fluid) has impeded flow. 

The Company has been monitoring a pressure build up at the well for several months and has now conducted a productivity test. 

The test has produced gas, indicating some dissipation of the water block and confirming the gas pool. The well will continue to be monitored for ongoing gas pressure build up and further testing will be considered.

State Gas said it is looking forward to announcing further positive results from Reid’s Dome and will provide further updates in the near future.

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