State Gas’ Rougemont 2 and 3 wells have continued to show promise, with the production testing indicating 350,000 standard cubic feet (scft) of gas production per day.
Flow rate at the wells continues to increase between 15-20,000 scft per day.
State Gas – who holds a 100 per cent stake in the project – said that, if production continues to increase, then moving the CNG project compression assets from Reid’s Dome to Rougement will be justifiable.
Moving the assets would result in an increased cash flow from the project without compromising the capacity of Reid’s Dome gas to capitalise on the area’s increasingly volatile domestic gas market.
Part of State Gas’s reassessment of its strategy involves evaluating the potential for a new pipeline – 20 km in length – to connect the project with the Wallumbilla to Gladstone pipelines.
The company said it will consider its next steps after discussions with the reserve certifier, scheduled for later in March.