Increases Interest in PL 231 to 80%
Brisbane, Nov 28, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises it has increased its Participating Interest in the Reid's Dome Gas Project (PL 231) from 60% 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, 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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