Court Orders Dome to Transfer Final 20% of PL 231 to State Gas
Court Orders Dome to Transfer Final 20% of PL 231 to State Gas

Brisbane, Sep 16, 2019 AEST (ABN Newswire) - Brisbane-based gas developer State Gas Limited (ASX:GAS) is pleased to advise on the outcome of proceedings in the Supreme Court of Queensland in respect of its acquisition of the final 20% interest in PL 231 and the Reid's Dome Joint Venture.

Highlights

- State Gas Limited successful in Supreme Court action to acquire final 20% interest in Reid's Dome.

- Court order made 16 September 2019 requiring Dome Petroleum Resources Plc (Dome) to execute transfer of its remaining 20% interest in PL 231.

- The provisions of the JOA executed in February 2017 fix the price for the acquisition of the 20% interest at $233,333.

- Dome ordered to pay the costs of State Gas on an indemnity basis.

As previously advised to the market, Dome failed to complete the transfer of its remaining 20% Participating Interest in PL 231 to State Gas in accordance with the requirements of the Joint Operating Agreement for PL 231 (JOA). State Gas Limited's right to increase its Participating Interest arises under the provisions of the JOA which facilitate the acquisition of the remainder of another Participant's Participating Interest where that Participating Interest has reduced below 25% (Compulsory Acquisition). Dome's Participating Interest reduced below 25% when State Gas acquired 20% of its Participating Interest in PL 231 in November 2018, as announced on 28 November 2018 (the November 20% Acquisition).

The provisions of the JOA executed in February 2017 fix the price for the Compulsory Acquisition of Dome's final 20% interest in PL 231 at $233,333.

The Company commenced proceedings in the Supreme Court of Queensland on 8 February 2019 seeking specific performance by Dome Petroleum Resources Plc (Dome) of its obligations under the JOA. The matter was heard in the Supreme Court this morning. The Judge made orders in favour of State Gas requiring Dome to execute a transfer and such other documents as may be necessary to affect the transfer of Dome's remaining interest in PL 231 to State Gas Limited. Further orders were made in favour of State Gas Limited for costs.


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.

 

 


Contact

Greg Baynton
Executive Director
M: +61-414-970-566
E: greg@stategas.com



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