Annual Report to Shareholders
Brisbane, Sep 4, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) provides the Company's Annual Report to shareholders.
Review of operations
2017-18 can truly be said to have been a formative year for State Gas. From little more than a shelf company at the beginning of the period, having acquired its interest in the PL 231 Gas Project in the prior year, the Company underwent an Initial Public Offering, listed on the ASX on 10 October 2017, and commenced operations. Lucy Snelling joined in February 2018, and subsequently James Crowley was engaged as Chief Operating Officer, starting on 2 July.
Our focus for 2017-18 has, as outlined in the Prospectus, been the PL 231 Gas Project. Since the ASX listing State Gas has:
- Conducted field surveys to investigate access and pipeline routes within the PL 231 permit;
- Conducted short term tests of historic wells on the permit, confirming the potential ofthree existing wells to produce good flows of pipeline quality gas;
- Reprocessed and interpreted as much existing seismic for the northern area of the permitas possible, identifying new gas targets in the north west of the permit and below thealready discovered gas pool in the Cattle Creek Gas Sands to the west of Primero-1. StateGas has commissioned further reprocessing and interpretation of the limited amount ofseismic in the southern area with the results to become available in Q3 2018;
- Made application for a pipeline survey licence (granted in August 2018) to assist in the investigation of a potential pipeline route to enable gas to be sold to market;
- Investigated commercialisation options, holding discussions with potential customers, engineering, infrastructure and facilities suppliers, and transportation providers to explore options for commercialisation and indicative costs;
- Commenced formal joint venture governance and activities with our 40% joint venture partner in the Reid's Dome gas project;
- Commenced planning for a three well drilling program to investigate the north west gas target identified by the seismic reprocessing, appraise the known gas pool in the Cattle Creek Formation and the newly identified lower target near Primero-1, and investigate the potential for coal seam as well as conventional gas in the Reids Dome beds. The objective of the program is to obtain information that, together with the flow tests, will enable the independent certification of reserves; and
- Established relationships and commenced negotiations with landholders and Aboriginal parties for the permit to enable the proposed drilling activities.
We are looking forward to drilling the three initial targets in the coming months and obtaining the first new drilling data since 2006.
While the PL 231 Gas Project is our focus we have also monitored the market for other opportunities which may be of interest to State Gas and its shareholders.
With our increasing knowledge base surrounding the Reid's Dome gas project and the initial drilling program about to commence, we are excited about the prospects for State Gas for the 2018-19 year.
To view the full report, please visit:
http://abnnewswire.net/lnk/3E0PPM72
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.
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