UPDATE ON INCREASE OF INTEREST IN PL 231
As advised on 5 December, State Gas has elected to increase State Gas's Participating Interest in the project through the provisions of the JOA which allow a Participant to acquire the Participating Interest of another Participant if that other Participant's interest in the project falls below 25%. On 4 December 2018, State Gas issued the relevant notices to commence the process to acquire the 20% interest in Reid's Dome Gas Project held by Dome Petroleum Resources Plc in accordance with the terms of the JOA.
State Gas is aware of recent comments made by Dome to the Australian media asserting that State Gas is not entitled to acquire Dome's remaining 20% stake in the project. State Gas, via its legal advisors, has written to Dome today rejecting this assertion and confirming that the notices issued on 4 December 2018 under the JOA are valid and enforceable.
State Gas has at all times acted both lawfully and appropriately and will continue to do so. Further updates will be provided on or before completion and settlement of these arrangements. State Gas Limited remains sole Operator and, upon completion and settlement of these arrangements, will hold 100% of the Reid's Dome Gas Project and PL 231.
The Company looks forward to progressing the remaining test work for the Nyanda-4 well samples and entering the next phase for 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