Quarterly Activities Report
Brisbane, July 12, 2022 AEST (ABN Newswire) - Recent months have highlighted the essential role of gas for the Australian and international economies, with intense focus on current and future demand and supply. Internationally gas is emerging as a commodity of strategic importance.
In this context, the June 2022 Quarter has seen State Gas Limited (ASX:GAS) focus its efforts to bring new gas supplies to market, with an emphasis on soonest possible delivery. The Company is exploring options to minimise infrastructure and speed deployment to facilitate early delivery and sales. This work has focussed on the Reid's Dome conventional gas in the northern area of PL 231, as well gas from the Rougemont area in Rolleston-West ATP 2062, both of which require only dehydration and compression to meet export quality requirements.
- Strategic review identifies Reid's Dome conventional gas for initial delivery to east coast gas market; options for rapid gas export under development.
- State Gas awarded two new Central Queensland exploration blocks in joint venture with Santos QNT Pty Ltd.
- JV terms agreed for carbon management project with Rockminsolutions Pty Ltd.
During the Quarter the Company undertook initial on-the-ground route survey work for an export pipeline from Reid's Dome, confirming the potential for a northern route that traverses through the Rougemont area to the high pressure pipeline network which provides access to both domestic and international markets. None of the Company's gas is subject to domestic reservation, enabling full optionality in gas sales.
During the Quarter, State Gas was appointed Preferred Tenderer with Santos QNT Pty Ltd for two new Central Queensland gas exploration areas in the most recent Queensland Government land release.
These two new blocks, ATP 2068 and ATP 2069 (previously PLR2021-1-2 and PLR2021-1-3), lie directly adjacent to the east and south of the State Gas' existing tenements PL 231 and ATP 2062, and to the west and in between existing Santos interests, including Arcadia Valley (see Figure 1 below*). As such they are of strategic importance to the Company in that they result in a commonality in interest across an entire gas-rich region, providing opportunities for optimisation of exploration and development, and economies of scale. Preliminary environmental and other approvals are currently being obtained, with the permits to be granted once complete.
The Quarter also saw State Gas progressing its carbon management initiative, agreeing to terms of a joint venture with minerals explorer Rockminsolutions Pty Ltd. The Joint Venture will investigate the potential of the Buckland Basaltic Sequence, located within EPM 27596 (within and adjacent to the western area of State Gas' Rolleston-West Project ATP 2062), to enable significant decarbonisation through carbon mineralisation, either in- and ex-situ.
The Joint Venture will initially investigate the potential of the Buckland basaltic ignimbrite for a range of ex-situ mineral carbonation purposes such as soil mineral carbonation, while also investigating its potential as a supplementary cementitious material to make low-carbon cements.
Important information as to potential of the deposit for in-situ mineral carbonation - applying the process currently being successfully implemented by Carbfix in Iceland - will be revealed as a consequence of this initial work.
Planning is currently underway for the drilling of two chipholes into the area to obtain samples for testing.
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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