State Gas Limited (
Utilising its virtual pipeline trucking approach, the Company intends to commence shipping CNG to end users in the Bowen Basin in late November 2023.
The Company will shortly execute a construction contract for the CNG facility and associated works with Wasco (Australia) Pty Ltd ("Wasco"). State Gas and Wasco have been working together over the last eight months to design and engineer the CNG facility to support the compression of up to 1.7TJ/day of gas. Gas will be sourced from the Rougemont 2/3 lateral well system ("Rougemont 2/3") which produced strong production testing results during the period of February 2023 to May 2023. The Company expects that when connected to the CNG facility, Rougemont 2/3 could produce up to 0.75TJ/day of CNG which will support modest initial revenues and cashflows for the Company.
Wasco and the Company are committed to a rapid construction and commissioning timetable of ten weeks, subject to weather. All components necessary for the CNG Plant have passed factory acceptance testing at Wasco's Brisbane yards. State Gas is working closely with the landowner to identify the most efficient date to commence field activities, but we anticipate mobilisation for initial civil works as early as next month.
Executive Chairman, Richard Cottee said "Now that the relevant funding has been secured, the Company can move forward with confidence and make the important transition from explorer to early-stage producer.
Our partners Wasco have enabled us to deliver a flexible, low-cost production solution that will enable State Gas to conduct further production and appraisal testing of the Rolleston West project, but more importantly start generating initial cashflow for the Company. The Company is now focussed on the rapid execution of the construction and commissioning process."
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 prog
Chief Executive Officer
Phone: 0488 007 889
Phone: 0458 517 850
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