Annual Report to Shareholders
Brisbane, Sep 4, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) provides the Company's Annual Report to shareholders.
Review of operations
2017-18 can truly be said to have been a formative year for State Gas. From little more than a shelf company at the beginning of the period, having acquired its interest in the PL 231 Gas Project in the prior year, the Company underwent an Initial Public Offering, listed on the ASX on 10 October 2017, and commenced operations. Lucy Snelling joined in February 2018, and subsequently James Crowley was engaged as Chief Operating Officer, starting on 2 July.
Our focus for 2017-18 has, as outlined in the Prospectus, been the PL 231 Gas Project. Since the ASX listing State Gas has:
- Conducted field surveys to investigate access and pipeline routes within the PL 231 permit;
- Conducted short term tests of historic wells on the permit, confirming the potential ofthree existing wells to produce good flows of pipeline quality gas;
- Reprocessed and interpreted as much existing seismic for the northern area of the permitas possible, identifying new gas targets in the north west of the permit and below thealready discovered gas pool in the Cattle Creek Gas Sands to the west of Primero-1. StateGas has commissioned further reprocessing and interpretation of the limited amount ofseismic in the southern area with the results to become available in Q3 2018;
- Made application for a pipeline survey licence (granted in August 2018) to assist in the investigation of a potential pipeline route to enable gas to be sold to market;
- Investigated commercialisation options, holding discussions with potential customers, engineering, infrastructure and facilities suppliers, and transportation providers to explore options for commercialisation and indicative costs;
- Commenced formal joint venture governance and activities with our 40% joint venture partner in the Reid's Dome gas project;
- Commenced planning for a three well drilling program to investigate the north west gas target identified by the seismic reprocessing, appraise the known gas pool in the Cattle Creek Formation and the newly identified lower target near Primero-1, and investigate the potential for coal seam as well as conventional gas in the Reids Dome beds. The objective of the program is to obtain information that, together with the flow tests, will enable the independent certification of reserves; and
- Established relationships and commenced negotiations with landholders and Aboriginal parties for the permit to enable the proposed drilling activities.
We are looking forward to drilling the three initial targets in the coming months and obtaining the first new drilling data since 2006.
While the PL 231 Gas Project is our focus we have also monitored the market for other opportunities which may be of interest to State Gas and its shareholders.
With our increasing knowledge base surrounding the Reid's Dome gas project and the initial drilling program about to commence, we are excited about the prospects for State Gas for the 2018-19 year.
To view the full report, please visit:
http://abnnewswire.net/lnk/3E0PPM72
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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