Quarterly Activities Report
Brisbane, Oct 31, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to provide this update for the quarter ended 30 September 2023 ("the Quarter").
Following the successful capital raising transaction completed during the quarter, State Gas was able to complete the assembly of critical components of the Compressed Natural Gas ("CNG") Facility in its Brisbane construction yard. Civil works including the laying of foundations for the facility are currently being carried out. The compressor and dehydrator will be transported to site over the coming weeks in time for commissioning of the CNG Plant to commence in late November 2023.
By December 2023 the Company should be shipping initial cargoes of CNG. This revenue will be applied to fund the drilling necessary for reserve certification sufficient to underwrite the financing of the long-term pipeline infrastructure which will enable further scaling of the Rolleston West Project.
Successful capital raise
During the quarter, the Company raised $6.9 million (net of fees and transaction costs) from the issuance of shares to new and existing shareholders at $0.15 per share. This transaction, structured as an institutional share placement followed by a retail share purchase plan, received strong support from new and existing shareholders. It also allowed the Company to welcome a number of new institutional shareholders who share the Company's vision of opportunities in the gas sector and how the Company's CNG Project can deliver long term value.
Capital raised from the Placement and SPP will primarily be used to fund the construction and commissioning of the Company's CNG Facility as part of the Rolleston West Project (ATP 2062). Upon completion, the CNG Facility will allow the Company to sell CNG produced from the Company's Rougemont 2/3 dual lateral well ("Rougemont 2/3") as well as supporting further expansion of that exploration project.
The Company expects to increase daily CNG production from an initial 0.5TJ/day to 1. 5TJ/day through the compression and sale of production testing gas generated from additional exploration wells the Company will drill early in calendar 2024. The Company commenced in-field construction activities for the CNG Facility in October 2023 and remains on-schedule for plant commissioning in December 2023.
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/2Y7K3JN0
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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