Authority to Prospect for New Gas Acreage Granted
Brisbane, Oct 2, 2020 AEST (ABN Newswire) - Following its appointment last week as Preferred Tenderer for new gas acreage in the Bowen Basin in the most recent Queensland Government Land Release, State Gas Limited (
ASX:GAS) is very pleased to advise that the Authority to Prospect (ATP) for the area was granted yesterday.
State Gas has accelerated efforts to obtain the necessary Environmental Approval and meet other conditions as Preferred Tenderer, resulting in the grant of ATP 2062 by the Minister for Natural Resources, Mines and Energy within a fortnight of being appointed preferred tenderer.
The formal grant of ATP 2062 allows State Gas to commence activities on its new Rolleston-West project, adjoining its existing Reid's Dome Gas Project (PL 231).
As announced on 1 October 2020, the Company has commenced planning for drilling of an initial gas well within Rolleston-West, proposed Rougemont-1, to investigate the highly-prospective and well-understood gas-bearing Bandanna coals in the eastern region of the acreage. The rapid grant of ATP 2062 ensures that the new well can be drilled in conjunction with the Company's planned drilling campaign for neighbouring PL 231, facilitating significant efficiencies and cost savings.
This proposed new well will be the first of several planned over the Initial Work Program for the Rolleston-West acreage, investigating both coal seam gas and conventional targets in the area.
State Gas Executive Chairman Richard Cottee expressed his delight at the quick grant of the ATP: "I am very pleased with the speed at which the new permit has been issued, meaning we can immediately move onto the ground and start drilling in the permit. Receiving the permit now means we can ensure it is drilled as part of the Reid's Dome campaign this Quarter. This means no delays in obtaining the benefits of the new area", he said.
"The new Rolleston-West project has increased the Company's gas acreage more than eight-fold, and has the potential to quadruple the Company's resource position. The increase in scale will enable efficiencies and optionality in infrastructure, operations, management and marketing."
"Neither Reid's Dome nor Rolleston-West are restricted by domestic gas reservation requirements", Mr Cottee said.
The Company is well-funded to progress the upcoming drilling and production testing at both Reid's Dome and the new Rolleston West Gas Project following a $9.5M private placement announced last week, along with a Share Purchase Plan currently underway.
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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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