Annual Report to Shareholders
Brisbane, Sep 28, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is a gas exploration and development company with operations in the southern Bowen Basin in Central Queensland. The Company's mission is to support energy markets through the efficient commercialisation of previously undeveloped gas resources. It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its acreage in highly prospective areas that can either apply the Company's compressed natural gas ("CNG") trucking approach or have access to traditional gas pipeline infrastructure.
The Company's existing 100% owned projects at PL231 and ATP 2062, in conjunction with joint venture interests over substantial adjoining areas, means that the Company has exposure to a highly prospective gas producing region in the southern Bowen Basin. In addition to supporting substantial 2C gas resources, the Company believes there are significant opportunities for synergistic and coordinated development of this important gas region over time.
The Company has continued to refine its strategy of delivering early-stage production using its CNG trucking approach. During the year, the Company completing a range of planning and precommissioning activities, to enable the commencement of construction of the compressed natural gas facility ("CNG Facility") and begin production and sale of gas ("the CNG Project").
Pursuant to the successful completion of capital raising transactions post year end, funding is now in place to allow construction of the CNG Facility. It is the Company's intention to immediately install and commission the CNG assets and commence selling compressed natural gas using its CNG trucking solution.
The Company's CNG trucking solution (or a Virtual Pipeline) draws on the North American experience in the cost-effective development of this option, to commercialise gas production in infrastructure remote areas. The Company has studied this technology and, in conjunction with its engineering partners, developed a unique application for coal seam gas ("CSG"). When completed, the Company's CNG facility will intake, dehydrate and compress CSG provided from Rougemont 2/3. The CNG is then filled into safe, specially designed gas tube trailers that will transport the gas to end users or an existing pipeline tie-in location. The existing ATP 2062 instrument and associated environmental approval allow the operation of the compression facility at that location during production testing.
Successful execution of the CNG strategy will begin to demonstrate the Company's credentials as an innovator in the junior energy sector and provide a pathway to realise the significant value inherent in the Company's asset base. It will allow the Company to generate modest operating cashflows which will see it significantly reduce its reliance on new equity capital to finance its exploration activities and other operating costs.
*To view the Annual Report, please visit:
https://abnnewswire.net/lnk/KL4NA415
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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