Quarterly Activities Report
Brisbane, July 31, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to provide this update for the quarter ended 30 June 2023 ("the Quarter"). During the period, the Company made significant progress with a range of planning and pre-commissioning activities, which means it is now ready to commence construction of its compressed natural gas facility ("CNG Facility") and begin saleable gas production immediately thereafter ("the CNG Project").
HIGHLIGHTS:
- Confirmation that State Gas is unaffected by the Gas Mandatory Code of Conduct and other regulatory pricing controls means it can now confidently move forward with its strategy, particularly the development of its Compressed Natural Gas ("CNG") Project
- Preparatory work is now complete, allowing State Gas to be ready to immediately commence construction of the CNG Facility and begin the production and sale of CNG
- The use of CNG trailers to transport cargoes of gas has enabled the Company to establish flexible offtake arrangements which will more efficiently support increases in daily gas production
- The Company is evaluating the most efficient source of remaining funding for the construction of the CNG facilities which, when built, will enable State Gas to generate operating cashflows and reduce the requirement for equity capital for its ongoing exploration and development activities
*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/AIK283IT
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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