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State Gas unearths new CBM

play in Queensland

AUSTRALIA AUSTRALIAN independent State Gas has Rougemont-1 was spudded on May 17 and
announced that a second well on its wholly reached a depth of 800 metres, while Rougem-
owned coal-bed methane (CBM) project in ont-2 was drilled to a depth of 540 metres.
Queensland has confirmed a new gas play. State Gas wants to install the necessary facil-
State Gas said on June 9 that test results from ities as soon as possible to determine produc-
the Rougemont-2 well, which was spudded on tion metrics for both gas and water. At the same
May 27, had confirmed a new Bandanna CBM time, planning is also underway for an appraisal
play in the 1,414-square km authority to pros- drilling.
pect (ATP) 2062 (Rolleston-West) project. The Executive chairman Richard Cottee said:
well encountered 8 metres of net coal, consistent “The results of the drill stem tests at Rougem-
with predictions, and has since been suspended ont-2 have established the presence of excellent
pending production testing. permeability. In fact, the results of permeability
State Gas said the gas-bearing Bandanna coal testing in the well remind me of my early days
measures showed strong correlation with meas- at QGC. The permeability of the coals in the
ures identified by coal exploration holes and ‘nose’ structure at our Rougemont-2 area rivals
past conventional wells in the area. Analysis of that of QGC’s legendary Undulla Nose in the
drill-stem test (DST) data confirmed excellent Surat Basin to the south, which was first drilled
permeability, with State Gas adding that initial in 2000.”
analysis received from the company’s first well Cottee added that this comparison, coupled
indicated near-pipeline quality gas. As such, the with other well and exploration data across the
company is confident that field reserves exceed area, gave him “great confidence of an exciting
the threshold for commercial volumes. new era for the company”.
The company has begun planning for produc- Rolleston-West lies adjacent to the already
tion testing at its two Rougemont wells, with the producing Reid’s Dome CBM project, which is
second well set to be used in the testing process. located in petroleum lease (PL) 231.™

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