State Gas announces 20-kilometre pipeline project

State Gas has announced that production testing gas from the Rougemont 2/3 lateral well is flowing at a rate that is approaching being unquestionably economic and is thus focussing its attention on underpinning construction of a gas pipeline.

State Gas announced that Rougemont is producing un excess of 350000 scft/day with the flowrate increasing at between 15,000 to 20,000 scft/day, the company is thus now pursuing the rapid certification of reserves to underpin construction of a gas pipeline.

The early success of the Rougemont production test means indeed the company is evaluating the quickest method by which it can get reserves declared onsite to underwrite the financing of an approximately 20-kilometre-long pipeline to a connection on the Wallumbilla to Gladstone Pipelines.

If this production continues to increase at this rate, it will justify temporarily relocating the relocatable CNG project compression assets from Reid’s Dome to Rougemont in Queensland.

A decision on the precise next steps to be undertaken this dry season will be made after discussions with the reserve certifier this month.

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