CNG Facility Construction Update
Brisbane, Sep 29, 2023 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) (STGSF:OTCMKTS) is pleased to provide an update on preconstruction activities for its compressed natural gas ("CNG") facility which will support the processing and initial sale of production testing gas from its Rolleston West Project.
Environmental and cultural heritage clearance has been obtained for all construction areas including pipeline alignments. The pre-commissioned components of the CNG Facility and other associated construction components and materials will be shipped to site in the week beginning 9 October 2023 with civil site works to commence later that week. The total construction timetable remains unchanged at six to eight weeks, followed by an extended period of plant commissioning. The long term forecast over that period suggests favourable weather conditions.
Executive Chairman, Richard Cottee said "State Gas is committed to keeping its shareholders and other stakeholders updated as the Company completes a series of critical milestones on the path to delivering initial gas production from its Rolleston West Project. The Company has made excellent progress over the last month in finalising procurement, completing pre-commissioning work and completing final site surveys. As a result, site works will commence in the week beginning 9 October 2023, with the Company on track for CNG plant commissioning and first gas by late November 2023."
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.