Share Purchase Plan Results
Brisbane, Sep 5, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) advises that the Share Purchase Plan ("SPP") announced on Tuesday, 8 August 2023 closed on Thursday, 31 August 2023. Under the terms of the SPP, eligible shareholders were entitled to be issued up to $30,000 worth of shares in the Company at the SPP issue price.
The SPP offer was made to 1,429 eligible shareholders, with valid applications received from 163 eligible shareholders for a total of $2,385,094 and an average application amount of approximately $15,000.
The SPP shares will be issued at $0.15 per share (SPP Issue Price), being a 16.7% discount to the volume weighted average market price of the Company's shares calculated over the last 5 days on which sales in the Company's shares were recorded before the SPP was announced on Tuesday, 8 August 2023.
State Gas expects the 15,900,675 new SPP shares to be issued on Wednesday, 6 September 2023 and to commence trading on ASX on Thursday, 7 September 2023.
Funds raised from the SPP will be used to fund additional drilling and working capital.
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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