Authority to Prospect for New Gas Acreage Granted
State Gas has accelerated efforts to obtain the necessary Environmental Approval and meet other conditions as Preferred Tenderer, resulting in the grant of ATP 2062 by the Minister for Natural Resources, Mines and Energy within a fortnight of being appointed preferred tenderer.
The formal grant of ATP 2062 allows State Gas to commence activities on its new Rolleston-West project, adjoining its existing Reid's Dome Gas Project (PL 231).
As announced on 1 October 2020, the Company has commenced planning for drilling of an initial gas well within Rolleston-West, proposed Rougemont-1, to investigate the highly-prospective and well-understood gas-bearing Bandanna coals in the eastern region of the acreage. The rapid grant of ATP 2062 ensures that the new well can be drilled in conjunction with the Company's planned drilling campaign for neighbouring PL 231, facilitating significant efficiencies and cost savings.
This proposed new well will be the first of several planned over the Initial Work Program for the Rolleston-West acreage, investigating both coal seam gas and conventional targets in the area.
State Gas Executive Chairman Richard Cottee expressed his delight at the quick grant of the ATP: "I am very pleased with the speed at which the new permit has been issued, meaning we can immediately move onto the ground and start drilling in the permit. Receiving the permit now means we can ensure it is drilled as part of the Reid's Dome campaign this Quarter. This means no delays in obtaining the benefits of the new area", he said.
"The new Rolleston-West project has increased the Company's gas acreage more than eight-fold, and has the potential to quadruple the Company's resource position. The increase in scale will enable efficiencies and optionality in infrastructure, operations, management and marketing."
"Neither Reid's Dome nor Rolleston-West are restricted by domestic gas reservation requirements", Mr Cottee said.
The Company is well-funded to progress the upcoming drilling and production testing at both Reid's Dome and the new Rolleston West Gas Project following a $9.5M private placement announced last week, along with a Share Purchase Plan currently underway.
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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 (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
State Gas Limited