State Gas Limited Stock Market Press Releases and Company Profile
Private Placement and Share Purchase Plan to raise $11.5M
Private Placement and Share Purchase Plan to raise $11.5M

Brisbane, Sep 23, 2020 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) advises that it has received firm commitments to undertake a private placement to sophisticated investors raising $9.5M. In addition, the Company is undertaking a Share Purchase Plan (the Plan or SPP) targeting a further $2 million to allow qualifying shareholders the opportunity to participate alongside investors in the private placement.

The private placement and SPP follows the announcement yesterday by the Queensland Government of the appointment of State Gas as Preferred Tenderer for Authority to Prospect (ATP) for PLR2020-1-5, a large (1,414 km2) new area of gas acreage located 40 km south west of Rolleston in Central Queensland, contiguous with the Company's PL231 (Reid's Dome Gas Project).

Funds raised under the placement and SPP will be used to drill and production test at least three new gas wells (subject to approvals), and provide funding for field geology, seismic reprocessing and infrastructure studies for PLR2020-1-5 ("Rolleston-West") and PL231 ("Reids Dome"), along with corporate and fundraising costs.

Private Placement

State Gas is pleased to announce that it has received firm and binding commitments from sophisticated and strategic investors including Trevor St Baker (and associated entities) and other experienced energy and technology investors to raise $9.5M. The issue price of the new Shares is $0.55 per Share.

The Placement will result in the issue of 17,272,730 new fully paid ordinary shares in State Gas.

Settlement is scheduled for 29 September 2020, with allotment of new shares planned for 2 October 2020. The new shares are being issued without shareholder approval and using the Company's existing capacity under Listing Rule 7.1

Share Purchase Plan

The issue price under the SPP will be $0.55 per share, which represents a 4.1% discount to the Volume Weighted Average Market Price (VWAP) over the last 5 days on which sales of shares are recorded prior to the announcement of the SPP to ASX on 23 September 2020.

Under the SPP, eligible shareholders, being those with registered address in Australia or New Zealand on 22 September 2020 (Record Date) (Eligible Shareholders), will be given the opportunity to purchase up to $30,000 worth of new fully paid ordinary shares in the Company at a discount and without incurring brokerage or transaction costs. Eligible Shareholders will be able to participate in the SPP by subscribing for shares in multiples of $5,000, subject to a scale back at the Directors' discretion and the Listing Rules.

The SPP is targeting a maximum of $2,000,000. The SPP is not underwritten, however the Company reserves its right to accept additional funds received and place any shortfall under the SPP at a price not less than the issue price in accordance with its share issue capacity under the Listing Rules.

To view the indicative timetable, please visit:
https://abnnewswire.net/lnk/JA2BWZ71


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
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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