Page 12 - AsianOil Week 35

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firm gas supply “had a material adverse impact” “[N]otwithstanding the impairments,
on the company’s revenue. He said: “Twelve our analysis shows the contract prospects
months ago, we had an offshore gas field devel- for uncontracted gas in south-east Australia
oped, ready to go and the expectation to supply from 2022 onwards are even stronger than
more than 12 PJ [312.58mn cubic metres] of gas they were six months ago,” he said.
at term contract prices in the financial year. At Maxwell noted that the upstream cap-
year-end, we had sold 2 PJ [52.1 mcm] at spot ital expenditure cutbacks this year and
prices.” next would intensify a projected tighten-
OGPP was originally slated to come online in ing of the East Coast gas supply picture
late 2019, but pipeline operator APA has struggled from 2022.
to bring the facility up to full operating perfor- “The growth in our gas assets and oppor-
mance. The plant is designed around proprietary tunities during 2020 will prove propitious.
hydrogen sulphide removal technology, and APA The acquisition of the Minerva Gas Plant
said in April that it was working with the technol- during the year will give access to a low-cost
ogy providers to boost production levels. processing hub for offshore Otway Basin gas.
Despite the challenges the company has The Annie and Dombey gas discoveries made
faced, Maxwell remained upbeat about the com- during the year hold potential which we are
pany’s short and long-term prospects. currently pursuing,” he said.™

State Gas reveals CBM production record

PROJECTS & AUSTRALIAN junior State Gas has revealed a The company is also investigating PL231’s
COMPANIES new coal-bed methane (CBM) production test further CBM potential, following the comple-
record at its wholly owned Reid’s Dome project tion of its first phase of exploration and appraisal.
in the Bowen Basin. The first phase involved drilling and testing of
The company announced that gas flow rates the Nyanda-4, Serocold-1 and Aldinga East-1A
from its Nyanda-4 well had topped 114,000 cubic wells. In addition to Nyanda-4, production test-
feet (3,228 cubic metres) per day on September ing is also underway at Serocold-1.
1. The company has begun drawing up plans Cottee, however, said: “Similar results from
for an export pipeline from the project, which Serocold-1 are not expected from the current
is located in petroleum lease (PL) 231. PL 231 is testing programme, given the extent of well dam-
also home to conventional and tight gas targets. age at that site. However, the gradual increase we
State Gas said that following a desktop study are seeing in daily production at Serocold-1 is
of potential routes, it had refined the area of its also very encouraging for the future.”
petroleum survey licence (PSL) – which was State Gas noted in August that well damage
awarded on August 27 – to the identified routes’ and debris at Serocold-1 had resulted in only
area. The award of PSL 2049 will allow the com- 54% of the targeted coal seams being exposed
pany to begin on-the-ground route studies, to the test. Serocold-1 was producing at a rate
though State Gas has said it is waiting for “cur- of 13,000 mcf (386 cubic metres) per day as of
rent COVID-19 concerns” to recede before it August 17, with flow rates increasing at around
does so. 2.5% per day over the preceding two weeks.
Commenting on Nyanda-4’s performance, The company has hired Netherland Sewell
State Gas executive chairman Richard Cot- & Associates to conduct an independent certi-
tee said: “Exceeding 100,000 mcf [2,832 cubic fication of the Reid’s Dome resource, with the
metres] per day after less than six weeks of dewa- maiden certified estimate expected by the end of
tering is very promising.” September.™

P12 www. NEWSBASE .com Week 35 03•September•2020