State Gas Limited Stock Market Press Releases and Company Profile
UPDATE ON INCREASE OF INTEREST IN PL 231
UPDATE ON INCREASE OF INTEREST IN PL 231

Brisbane, May 31, 2019 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) (State Gas, the Company) refers to its previous announcements on 5 December 2018, 11 December 2018 and 8 February 2019 regarding its initiation of a process to increase its Participating Interest in the Reid's Dome Gas Project (PL 231) from 80% to 100% in accordance with the provisions of the Joint Operating Agreement (JOA) for PL 231.

The Company is providing an update on the proceedings commenced in the Supreme Court of Queensland on 8 February 2019 seeking specific performance by Dome Petroleum Resources Plc (Dome) of its obligations under the JOA.

As previously announced, Dome failed to complete the transfer of its remaining 20% Participating Interest in PL 231 to State Gas in accordance with the requirements of the JOA. State Gas's right to increase its Participating Interest arises under the provisions of the JOA which facilitate the acquisition of the remainder of a Participant's Participating Interest where that Participating Interest has reduced below 25% (Compulsory Acquisition). Dome's Participating Interest reduced below 25% when State Gas acquired 20% of its Participating Interest in PL 231 in November 2018, as announced on 28 November 2018 (the November 20% Acquisition).

In an attempt to avoid Compulsory Acquisition, Dome has filed a counterclaim in the court proceeding seeking to reverse the November 20% Acquisition. The counterclaim is being strenuously defended by State Gas and the Company remains confident of its position with respect to both its claim and Dome's counterclaim.

A mediation facilitated by a retired Supreme Court of Queensland and Queensland Court of Appeal Judge was attended by both parties on 30 May 2019. The matter was not resolved during mediation. The matter will now proceed to the Supreme Court of Queensland, with a trial date set for the latter part of the third quarter of 2019.

State Gas will continue to keep the market updated regarding any changes to the status and progress of the matter.


About State Gas Limited

State Gas Limited ASX:GASState 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.

 

abnnewswire.com 


Contact

Lucy Snelling
Chief Executive Officer
M: +61-439-608-241
E: lucy@stategas.com

Greg Baynton
Executive Director
M: +61-414-970-566
E: greg@stategas.com



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