Increases Interest in PL 231 to 80%
The increase in the Company's Participating Interest to 80% has arisen through the agreed acquisition by State Gas Limited of an additional 20% interest in PL 231 and the Reid's Dome Joint Venture by way of funds offset in partial satisfaction of Cash Calls owed by State Gas' partner under the terms of the Joint Operating Agreement.
Subject to these proportional changes to the Participating Interest-levels in the Reid's Dome Joint Venture, the Joint Operating Agreement continues in full force and effect.
At its new Participating Interest level of 80%, State Gas will be responsible for 80% of the ongoing costs of the Reid's Dome Joint Venture, including the drilling of the Nyanda-4 coal seam gas and conventional gas well (currently underway).
State Gas Limited remains sole Operator and is now 80%-owner of the Reid's Dome Gas Project.
About State Gas Limited
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator and 80%-owner (transitioning to 100%) of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
State Gas Limited