The first well in the State Gas Phase 2 exploration and appraisal program for the Reid’s Dome gas project spudded this week.
The company said the Phase 2 was being undertaken to implement its strategic plan to bring gas to market to meet near-term forecast shortfalls in the east coast market.
The Nyanda-7 well is being drilled as a step out well to Nyanda-4, from which gas was produced at rates approaching 500,000 cubic feet per day.
State Gas plans to log the new well once it reaches total depth (planned at 1200m), and subsequently commence production testing.
Nyanda-7 will be followed by at least three further production wells at the the Reid’s Dome gas project.
State Gas is also planning the drilling of two coreholes at its new Rolleston-West project (ATP 2062) in the new year.