Access to Rolleston West Project Assets Restored
Brisbane, Nov 19, 2024 AEST (ABN Newswire) - Further to the announcement on 4 November 2024, State Gas Limited (
ASX:GAS) is pleased to provide an update on the Access Dispute which has arisen between itself and the landowner for the Rolleston West Project ("the Landowner").
Late on 18 November 2024, State Gas and the Landowner entered into a settlement arrangement that allows State Gas to immediately recommence the Company's gas production activities on the Landowner's property. The arrangement also allows State Gas to continue its planned two-well exploration program subject to continued implementation of access protocols for the well sites as prescribed in the Conduct and Compensation Agreement ("CCA"). As part of the settlement arrangement, State Gas has agreed to discontinue legal action against the Landowner, subject to its access rights being preserved while the parties continue to resolve the underlying dispute in accordance with the process set out in the CCA.
The Company is now in the process of mobilising its field teams to recommence its gas compression and exploration activities as soon as possible.
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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