State Gas Limited (ASX:GAS) Private Placement Completed for Corporate Initiatives

State Gas Limited (ASX:GAS) ("State Gas" or the "Company") advises that it has undertaken a private placement to sophisticated investors raising $500,000.

The purpose of the Placement is to fund:

- additional legal expenses associated with the increase in the Company's Participating Interest to 100% of the Reid's Dome Gas Project (PL 231);

- additional costs arising from the Company's increase in its Participating Interest in PL 231;

- legal expenses in relation to pursuing possible transactions arising from interest received from potentially interested parties; and

- further working capital.

As announced to the ASX during February 2019, the Company has received approaches and interest from a number of parties to progress the Reid's Dome Gas Project in both partnering (asset-level) and corporate (company-level) transactions. In line with the Board's aim to ensure that discussions include all qualified and interested counterparties, State Gas has recently appointed leading independent M&A/Advisory firm Highbury Partnership as financial advisor to help it assess and respond to inquiries from interested parties. Presentations, discussions and Q&As are continuing with parties under confidentiality arrangements.

The $500,000 placement has been conducted at a price of $0.85 per Ordinary Share, with settlement on or before Wednesday, 6 March 2019.

The placement funds will provide further resources for the important corporate initiatives currently underway during the remainder of FY2019.

To view figures, please visit:
http://abnnewswire.net/lnk/03ZDM8TW


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

 

Related Companies

State Gas Limited