State Gas (ASX: GAS) is pleased to report that production testing gas from the Rougemont 2/3 lateral well has exceeded 457,000 scf/day.
State Gas says it's in the process of understanding when it will regain custody of the compressor for its Reid’s Dome CNG project, which was delayed, and expect it to be landed back in Brisbane by mid-May.
It also says the delay will have a consequential delay to the original CNG project timetable, but should allow the company to relocate the CNG Project to Rougemont, which should result in considerable operating cost savings.
The Queensland Government has approved changes to State Gas' pre-existing environmental authority for PL 231, allowing the company to move forward with construction and commissioning activities for the CNG Project.
State Gas holds a 35% interest in new permit ATP 2068 in joint venture with Santos QNT (65%), and has been appointed Preferred Tenderer for an additional new exploration block PLR2021-1-3.