Restructuring for Growth
Brisbane, Sep 10, 2024 AEST (ABN Newswire) - Following the recent successful re-capitalisation, State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is in the enviable position to be able to plan for the reserve certification necessary to underwrite a pipeline connection of its gas exploration and development projects to the gas-short domestic market. The Company is also well placed to further develop the market for its innovative high density natural gas (HDNG) technology.
The Company aims to position the sale of HDNG to replace diesel in coal trucks in Queensland with the near-term goal of enabling the Company to become cash positive. Given this milestone, the Board has decided to structure the Company's management to optimise the exciting opportunities ahead. Doug McAlpine, who has been the Chief Executive Officer for the last two years, will now join the board as Managing Director.
The Board believes that Mr McAlpine's appointment to the role of Managing Director will allow more coordinated and rapid execution of the Company's Strategy and more effectively leverage the broader capability of the Company's Directors and Management Team. Mr McAlpine joined State Gas as Chief Executive Officer in November 2022 and since that time has worked closely with the Board to reposition the Company. He has played an important role in progressing exploration and appraisal activity (including securing a government grant of $5.5M for two new exploration wells) at Rolleston West (ATP 2062) and has laid the foundations for an Alternative Fuels Business through leading the delivery and commissioning of the Company's HDNG production facility at Rolleston West.
To further support the rapid execution of the Company's Alternative Fuels strategy, State Gas is also pleased to appoint Mr Daniel Marcus to the role of Executive General Manager - Alternative Fuels. Mr Marcus is an experienced mining industry executive having held a variety of senior commercial and operational roles over his thirty-year career. He is a mechanical engineer by training and has deep experience in the day-to-day aspects of running efficient mining operations, in particular, the effective management of mining truck fleets. Mr Marcus' mining industry experience will be invaluable in developing and growing the Company's alternative fuels business that centres on the efficacy of HDNG as an alternative fuel source to replace diesel in the mining sector.
As a further demonstration of confidence in the expanded management team, Mr Richard Cottee is stepping down from his position as role as Executive Chairman but will remain as Non-Executive Chairman of the Company.
Richard Cottee said: "Having guided the company through difficult capital markets to being on the cusp of being cash positive, now is the right time for the Company to revert to the more traditional structure with an independent Chairman. This decision underlines my confidence in the Company's Executive Team led by Doug McAlpine and my optimism for State Gas' future".
Managing Director, Mr Doug McAlpine, said: "It has been my privilege to work with the Directors and Management Team over the last two years, having now established solid foundations for progressing the Rolleston West Project toward development, but also creating first mover advantage as an Alternative Fuelsprovider using HDNG. I am proud to have the opportunity to work with the Company's expanded leadership team as we deliver on the Company's vision and demonstrate increasing value for shareholders."
The key terms of Mr Doug McAlpine's services contract are included in Appendix 1*. Mr McAlpine's compensation package is structured to align his total reward with share price growth and the delivery of key operational and commercial milestones which will create long term value of the Company and its stakeholders.
*To view Appendix 1, please visit:
https://abnnewswire.net/lnk/JZ4W0R4V
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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