STATE GAS UNDERTAKES INSTITUTIONAL PLACEMENT AND ACCERATED NON-RENOUNCEABLE ENTITLEMENT OFFER
STATE GAS UNDERTAKES INSTITUTIONAL PLACEMENT AND ANREO
Brisbane, Aug 5, 2024 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to announce an institutional placement (Placement) and 1 for 2 accelerated non-renounceable entitlement offer (Entitlement Offer) (jointly, the Offer) to institutional and sophisticated investors and existing shareholders, to raise up to approximately $8.9 million before costs associated with the Offer.
HIGHLIGHTS:
- ~$2.0 million placement to sophisticated and institutional investors and a ~$6.9 million 1 for 2 accelerated non-renounceable entitlement offer at $0.05 per share, with attaching 12-month options exercisable at $0.08 on a 1 for 2 New Shares issued basis
- Proceeds used to finalise costs associated with the construction and commissioning of the Company's High Density Natural Gas ("HDNG") production facilities at Rolleston-West and provide the Company with working capital
- Subject to offer take-up, the offer may also allow the Company to:
o accelerate exploration and appraisal activities; and
o improve efficiency and production capability of the HDNG plant
*To view the full offer and timetable, please visit:
https://abnnewswire.net/lnk/LV29SRUF
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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