Completion of Share Purchase Plan
The SPP offer was made to 719 eligible shareholders, with valid applications received from 246 eligible shareholders for a total value of approximately $4.9 million. Valid applications received represented a participation rate of over one-third of eligible shareholders with an average application amount of approximately $20,000.
The combined funding of almost $14.5 million from the SPP and private placement will allow State Gas to undertake a more significant appraisal program at its 100%-owned Reid's Dome Gas Project (PL 231) and also commence drilling and testing at the contiguous Rolleston West Project (ATP 2062) very soon after its recent award to State Gas.
The proceeds will also assist in funding planning and approval activities for the gas pipeline and related infrastructure to export gas from the neighbouring PL 231 and ATP 2062 projects.
"The SPP provided eligible shareholders with an opportunity to increase their investment and was a resounding vote of confidence in State Gas," Executive Chairman, Richard Cottee commented.
"The proceeds from the SPP, when combined with the preceding private placement of $9.5 million not only strengthens our resolve to meet our Target 2022 objectives but also enables the Company to take its first steps to creating a new "super-gas region" within our wholly-owned acreage at a time of national need."
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