State Gas Limited Stock Market Press Releases and Company Profile
Annual Report to Shareholders
Annual Report to Shareholders

Brisbane, Sep 16, 2020 AEST (ABN Newswire) - During the year, State Gas Limited (googlechartASX:GAS) successfully embarked on the production testing of Nyanda-4 in the southern portion of the 100% owned PL231, Serocold-1 in the central portion and testing of Aldinga East-1A in the northern reaches. All of these have shown CSG presence across Reid's Dome, surely making PL231 a new CSG province which, with the further work envisaged this year should see PL231 become highly productive. Flow rates exceeding 230mscf/d at Nyanda-4 have been particularly encouraging for an open hole completion with no sentinel wells in little over 8 weeks of de-watering.

The existence of conventional gas at Reid's Dome alongside the CSG should enable State Gas to better meet the increasingly volatile demand profile of the Eastern Seaboard gas market. This demand-volatility is being caused by the increasing use of gas for intermediate/peak power as the need for dispatchable electricity increases to offset the intermittency inherent in renewable electricity. Nothing beats optionality in times of volatility.

The Federal Government's recently announced energy policy highlights the key role natural gas will play in the post COVID-19 recovery phase for the national economy. It is the company's intention that State Gas will play its role in this national objective. Commissioning the production facilities in late 2022, and selling gas in 2023 - the very year in which a critical shortage is forecast to eventuate.

To view the Annual Report, please visit:
https://abnnewswire.net/lnk/Q0MPO92F


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.

 

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Contact

Lucy Snelling
Chief Executive Officer
Phone: 0439 608 241
e-mail: lucy@stategas.com

Richard Cottee
Executive Chairman
Phone: 0458 517 850
e-mail: richard@stategas.com



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