Chairman's Address to the Annual General Meeting
Brisbane, Nov 21, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) provides the Company's Chairman address to the Annual General Meeting.
Welcome to our Company's first AGM since listing on the ASX in October last year.
As you will be aware, we conducted our IPO last year to raise the funds to explore and appraise the PL 231 permit area as sole Operator and 60% holder of the Permit.
Soon after listing last year, we successfully flow-tested the existing suitable wells within the Permit area and took gas samples for analysis.
We spent the majority of 2018 planning the initial program, including reprocessing of the available historical seismic data, interpreting the results using modern geophysical techniques and identifying and prioritizing drilling targets.
As part of the extensive planning activities for the current drilling program, the Company undertook environmental investigations, access arrangements with landholders and selected contractors through a comprehensive tender process.
This year also saw the grant of our Pipeline Survey Licence to investigate options to interconnect with the Queensland Gas Pipeline and broader east coast gas market.
In terms of personnel, we have been able to recruit Lucy Snelling, an experienced executive from the oil and gas sector with legal, commercial and operational experience as our Chief Executive Officer.
Following Lucy's appointment, we recruited James Crowley as our Chief Operating Officer. James's career in the industry includes 34 years in Australia, Egypt, New Zealand and the North Sea. He held senior executive roles with AGL Energy, Senex Ltd, Origin Energy Ltd, and Apache Corporation.
One of the tasks James undertook was a detailed review of the geology of the Permit and the results of historical drilling.
As previously advised, this review has indicated that in addition to conventional gas, PL 231 may have potential for significant quantities of coal seam gas due to both the presence of Permian coal seams and positive pressure maintenance. Surprisingly, the PL 231 permit area has not previously been explored for coal seam gas.
Following that geological review the Company refocussed its planning for drilling to include the investigation of the coal seam gas potential in PL 231.
That drilling program is now well underway, with the completion of our Primero West-1 well last week and the imminent commencement of drilling at Nyanda-4.
Lucy will be elaborating on the drilling program in her presentation.
As most market observers will be aware, the east coast gas market remains buoyant and gas shortages in the domestic market, and a strong international market present significant opportunities for new gas developments in Queensland.
As Australia and most other developed economies transition to a lower carbon environment, gas is likely to become more important as a transitional fuel, supporting intermittent renewable generation such as wind and solar.
Granted under the 1923 Act, our Permit conditions are not currently subject to the domestic gas reservation policies applicable to some of the more recent permit areas offered by the Queensland Government.
Subject to exploration success and infrastructure investment, we see long-term opportunities for the Reid's Dome Project to provide gas to both the domestic and international markets.
Clearly this is an exciting period ahead for the Company and we look forward to providing updates to shareholders and the broader market on the Project and our Company as we progress our exploration and development program.
To view the presentation to the Annual General Meeting, please visit:
http://abnnewswire.net/lnk/8MP81463
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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