Completion of Share Purchase Plan
Brisbane, Oct 27, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to advise that the Share Purchase Plan (SPP) offered to eligible shareholders, alongside the recent $9.5 million private placement, closed on 22 October 2020 receiving strong support. Applications exceeded the original target and the Company decided to accept all eligible applications.
The SPP offer was made to 719 eligible shareholders, with valid applications received from 246 eligible shareholders for a total value of approximately $4.9 million. Valid applications received represented a participation rate of over one-third of eligible shareholders with an average application amount of approximately $20,000.
The combined funding of almost $14.5 million from the SPP and private placement will allow State Gas to undertake a more significant appraisal program at its 100%-owned Reid's Dome Gas Project (PL 231) and also commence drilling and testing at the contiguous Rolleston West Project (ATP 2062) very soon after its recent award to State Gas.
The proceeds will also assist in funding planning and approval activities for the gas pipeline and related infrastructure to export gas from the neighbouring PL 231 and ATP 2062 projects.
"The SPP provided eligible shareholders with an opportunity to increase their investment and was a resounding vote of confidence in State Gas," Executive Chairman, Richard Cottee commented.
"The proceeds from the SPP, when combined with the preceding private placement of $9.5 million not only strengthens our resolve to meet our Target 2022 objectives but also enables the Company to take its first steps to creating a new "super-gas region" within our wholly-owned acreage at a time of national need."
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.
| ||
|
