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) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.
Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).
State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.
The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.
State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.
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