Quarterly Activities Report
Brisbane, April 28, 2023 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) (STGSF:OTCMKTS) is pleased to advise that during the quarter to 31 March 2023 ("the Quarter") it made significant progress on its Reid's Dome and Rolleston West projects. This progress was achieved against a backdrop of increasing uncertainty caused by federal government regulatory intervention in the gas sector, with the Company moving closer to its vision of transitioning from exploration to production.
The Company is strategically well positioned with a portfolio of geographically contiguous, highly prospective exploration areas in the Southern Bowen Basin. These assets are located close to existing gas infrastructure and can produce low cost, pipeline quality gas. This is a key gas development precinct for Queensland and State Gas' projects, particularly Rolleston West, have the hallmarks of world class development assets. Gas from the Company's permits is not restricted by domestic gas reservation requirements, and therefore, can be sold to either local customers or export markets. On the back of strong production testing performance from the Rougemont 2/3 lateral well pair ("Rougemont") during the quarter, accelerating the delivery of pipeline quality gas from Rougemont is now a critical element of the Company's strategy to bring on new supply for the tightening eastern seaboard gas market.
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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.
State Gas Limited