State Gas Limited has announced an “exponential” increase in gas flow rates at its Nyanda-4 well at the Reid’s Dome Gas Project (PL231) since the last production update on Friday, 11 September, following the installation of custom designed pumps. 

Gas flow rates from Nyanda-4 have continued to increase significantly, with a record flow rate in excess of 310mscf/d achieved.

The record gas production at Nyanda-4 follows the recent installation of customised pumping equipment designed and built in Canada to suit the local conditions at Reid’s Dome. 

The high yielding pumping solution adopted by State Gas will be highly valuable in optimising future gas production from wells within its fully-owned Reid’s Dome Gas Project.

State Gas Executive Chairman, Richard Cottee, said, “I am really pleased with the performance of the Nyanda-4 well.

“Seeing the well improve gas production and now exceed previous flow rates using the customised pumps is very encouraging for the development of the whole Reid’s Dome gas field.”

As previously advised, Nyanda-4, drilled by the State Gas Limited in late 2018, was the first coal seam gas (CSG) well within the company’s 100 per cent owned Reid’s Dome Gas Project (PL231). 

Located in the southern region of the PL231, the well intersected 40m net coal and a further 25m of carbonaceous shales, as well as a number of conventional tight gas sands. 

With an average gas content of 13.75 m3/t (measured by desorption of the coal cores acquired from the well), the Nyanda-4 results confirmed the potential for a significant CSG project at Reid’s Dome.

The company has since embarked on Phase 1 of an exploration and appraisal program and confirmed the widespread presence of CSG across PL231. 

A key element of this program involved production testing the Nyanda-4 well to confirm the producibility of the gas in the coals.

The production test commenced in December 2019 and sustained gas flows from the well commenced after only five days of dewatering. 

In signs very encouraging for commerciality at the time, the gas rate built to a rate of 227 mscf/d after six weeks with low water make, before technical problems intervened and pumping ceased. 

The downhole pressure increased and the flow rate fell when dewatering ceased in January.

Following investigation of the pump issues and the installation of customised pumps, the Nyanda4 production test recommenced in July 2020. 

After eight weeks of dewatering, gas flow rates have suddenly increased exponentially in recent days, reaching more than 240 mscf/d overnight. Water production continues to be low.

Other milestones during the successful Phase 1 exploration and appraisal program at Reid’s Dome have included drilling the Serocold-1 and Aldinga East-1A wells, confirming a signific coal seam gas field across more than 12km north-south within PL231, along with production testing of Serocold-1.

Gas flows continue to build slowly at Serocold-1 using the new pumping solution, also confirming producibility of the gas.

Previously advised damage to the Serocold-1 well bore restricted the depth at which the pump could be placed, resulting in approximately 46 per cent of the targeted coal seams below the pump and unlikely contributors to this test. 

The increasing flow rates and low water-make at Serocold-1 is encouraging and bodes well for commercial production.

The dramatic production increase at Nyanda-4, and its implications for Serocold-1 and future wells at Reid’s Dome, also provide further support for commercial production from PL231 as tightening is expected in the east coast gas market over the coming two-to-three years.

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