State Gas has started a two-well exploration program at Rolleston West, drawing on a $5.5 million grant provided by the Queensland Government’s Frontier Gas Exploration Program.

Two new vertical wells will be drilled near the Rougemont 2/3 site in an area that has proven gas content and good permeability.

“We are very pleased to have recommenced field work today at the Rolleston West project,” State Gas managing director Doug McAlpine said.

“With the continued commitment of our people, service providers and the Queensland Government, we look forward to delivering positive exploration outcomes over the course of the 10-week exploration program.”

Related: State Gas weighs up setbacks at Rolleston West

The company anticipates that successful drilling and production testing results from the two new wells will enable it to seek accreditation for a maiden 2P reserve of 30-50PJs for the Rolleston West project.

Establishing an initial 2P reserve is a critical next step in demonstrating the commercial viability of a substantial gas project at Rougemont West and supporting an application for a petroleum lease over a substantial portion of ATP 2062.

State Gas said a 2P reserve would also allow discussions with potential end users and pipeline infrastructure providers who could connect the Rolleston West project to the Gladstone to Wallumbilla pipeline network.

State Gas will use its high-density natural gas (HDNG) plant to immediately capture and commercialise production testing gas from the new wells.

State Gas shipped its first cargos of HDNG from the compression facility at Rolleston West in May last year using its ‘virtual pipeline’ trailers.

The gas was bound for use in a trial of hybrid (diesel/natural gas) mine-truck engine technology at the Curragh coal mine in Central Queensland.

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