Completes A$8 Million Placement
Brisbane, Sep 24, 2021 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) is pleased to advise it has successfully completed an A$8 million placement at $0.32 per share (Placement). The offer received strong interest and was supported by a number of Australian institutional and sophisticated investors in the energy sector.
Highlights
- Successful placement completed raising A$8 million from institutional and sophisticated investors.
- The offer received very strong interest, with support from a number of leading energy investors.
- Funds accepted from investors will be used to:
o commence production testing at Rougemont-2 and undertake additional exploration drilling in the highly prospective Rougemont CSG fairway in the Company's 100% owned ATP 2062
o undertake further production testing at Nyanda 8 and Serocold 1 in the adjoining Reid's Dome Project (PL 231)
o expedite the development program for Reid's Dome consistent with the Company's aim to bring gas to market in 2023
o provide additional working capital in support of these operations and meet costs of the offer.
Richard Cottee, GAS Executive Chairman, said he was very pleased with the robust investor interest and the level of bids received.
"The strong demand for this placement reflects the increasingly high prices for gas and support for the mission the Company has embarked on to bring new supplies to market in 2023. 2023 is the year which the ACCC in its recent report indicates is the start of a critical need for additional gas supplies. The funds accepted will enable us to commence production testing at Rougemont and undertake further drilling, as well as complete the appraisal programme for Reid's Dome", Mr Cottee said.
Placement Overview
GAS will issue 25 million new shares ("New Shares") to accept new capital of A$8 million, at an issue price of $0.32 per share.
The placement price of $0.32 represents a 15.8% discount to the last closing price and a 21.6% discount to the 30 day VWAP of the Company's shares to 21 September 2021.
New Shares issued under the Placement will rank equally with existing ordinary shares from the date of issue. GAS will issue 25,000,000 New Shares without shareholder approval under Listing Rule 7.1. Settlement is expected to take place on or around 28 September 2021, with New Shares to be issued on 29 September 2021.
The State Gas field team is currently preparing for the next phase of work at the Company's 100%-owned Rougemont and Reid's Dome gas projects in Central Queensland.
Morgans Corporate Limited and CPS Capital Pty Ltd acted as Joint-Lead Managers to the Placement.
To view the Investor Update Presentation, please visit:
https://www.abnnewswire.net/lnk/25R6HK98
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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