Annual Report to Shareholders
Brisbane, Sep 16, 2020 AEST (ABN Newswire) - During the year, State Gas Limited (
ASX:GAS) successfully embarked on the production testing of Nyanda-4 in the southern portion of the 100% owned PL231, Serocold-1 in the central portion and testing of Aldinga East-1A in the northern reaches. All of these have shown CSG presence across Reid's Dome, surely making PL231 a new CSG province which, with the further work envisaged this year should see PL231 become highly productive. Flow rates exceeding 230mscf/d at Nyanda-4 have been particularly encouraging for an open hole completion with no sentinel wells in little over 8 weeks of de-watering.
The existence of conventional gas at Reid's Dome alongside the CSG should enable State Gas to better meet the increasingly volatile demand profile of the Eastern Seaboard gas market. This demand-volatility is being caused by the increasing use of gas for intermediate/peak power as the need for dispatchable electricity increases to offset the intermittency inherent in renewable electricity. Nothing beats optionality in times of volatility.
The Federal Government's recently announced energy policy highlights the key role natural gas will play in the post COVID-19 recovery phase for the national economy. It is the company's intention that State Gas will play its role in this national objective. Commissioning the production facilities in late 2022, and selling gas in 2023 - the very year in which a critical shortage is forecast to eventuate.
To view the Annual Report, please visit:
https://abnnewswire.net/lnk/Q0MPO92F
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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