State Gas Limited Stock Market Press Releases and Company Profile

Sydney, May 30, 2023 AEST (ABN Newswire) - State Gas Limited (googlechartASX:GAS) (googlechartSTGSF:OTCMKTS) is pleased to provide an update on the importation and commissioning of equipment to support production testing and early-stage gas sales from its Rolleston West (ATP 2062) and Reid's Dome (PL 231) projects in the southern Bowen Basin. The Company remains on-track to deliver first gas sales utilising its virtual pipeline trucking solution in July 2023.

The compressor has returned to Australia after offshore fumigation and was delivered to the Company's engineering yard on 17 May 2023. The compressor is in good condition and State Gas is confident it can support 1.7TJ/day of gas production as originally proposed. Fabrication and factory acceptance testing of the dehydrator is also now complete and the unit was shipped from the Port of Shanghai on 27 May 2023.

Over the coming weeks, this equipment and other associated assets will be brought into compliance with Australia Standards for mechanical and electrical operation and shipped to site for commissioning.

Executive Chairman, Richard Cottee said "Despite the ongoing frustrations with international supply chain constraints, the Company is now close to commissioning its CNG processing equipment and is on-track to commence sale of compressed natural gas in July 2023. Given the spot price domestically is already hovering over $20/GJ, the wait has proved worth it."

About State Gas Limited

State Gas Limited ASX:GASState 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.




Doug McAlpine
Chief Executive Officer
Phone: 0488 007 889

Richard Cottee
Executive Chairman
Phone: 0458 517 850

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