Pay day looms for State Gas as volatile winter nears
Richard Cottee’s State Gas could be in for a pay day from an “unquestionably economic” coal seam gas project in Queensland.
State Gas executive chair Richard Cottee.
The company said if the Rougemont well continues at its current improvements, despite the coal seams being 70 underwater, it could mean positive cash flows during “what should be an increasingly volatile domestic gas market following the closure of the Liddell coal fired power station in April”.
“The early success of the Rougemont production test means the company is evaluation the quickest method by which it can get reserves declared … to underwrite the financing of any approximately 20km pipeline to a connection on the Wallumbilla to Gladstone pipeline,” State Gas told investors.
“A decision on the precise next steps to be undertaken this dry season will be made after discussions with the reserve certifier this month.”
The well is producting at 350,000 sq/ft per day with the flowrate increasing by about 15,000 to 20,000 sq/ft per day.
Last week the company said another 70 metres of water had to be drawn down until the coal seams were exposed.
