Sydney-listed State Gas on January 6 said its Nyanda-8 well in Queensland has exhibited good potential for coalbed methane (.CBM) production.  There are already major operations producing CBM in the state, which are feeding three LNG export terminals.

Nyanda-8 is the second well in the company’s phase 2 drilling campaign at its 100%-owned Reid’s Dome gas project in the Bowen basin in central Queensland. The well reached the targeted total depth of 1,200m on January 3, following a spud on December 29. Wireline logs indicate the well has intersected 19.7m net coal, the company said. 

Nyanda-8 is some 2.2 km south-west of the Nyanda-4 well, and together with Nyanda-7, was drilled as a CBM well as part of the company’s programme to appraise the Nyanda Focus Area. 

“The results of both Nyanda-7 and Nyanda-8 are within the expected range based on data for Nyanda-4, where testing in late 2020 recorded gas production at rates approaching 500,000 m³/day,” State Gas said. “All three wells have intersected good quality coals, with seams of similar thicknesses and depths, confirming the widespread presence of gas-bearing coal seams and significant net coal within the Nyanda Focus Area.” 

The next step in the appraisal of the Nyanda area is to undertake production testing of the two new Nyanda wells and restart the production test at Nyanda-4, State Gas said.