Increases Interest in PL 231 to 80%
Brisbane, Nov 28, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises it has increased its Participating Interest in the Reid's Dome Gas Project (PL 231) from 60% to 80%.
The increase in the Company's Participating Interest to 80% has arisen through the agreed acquisition by State Gas Limited of an additional 20% interest in PL 231 and the Reid's Dome Joint Venture by way of funds offset in partial satisfaction of Cash Calls owed by State Gas' partner under the terms of the Joint Operating Agreement.
Subject to these proportional changes to the Participating Interest-levels in the Reid's Dome Joint Venture, the Joint Operating Agreement continues in full force and effect.
At its new Participating Interest level of 80%, State Gas will be responsible for 80% of the ongoing costs of the Reid's Dome Joint Venture, including the drilling of the Nyanda-4 coal seam gas and conventional gas well (currently underway).
State Gas Limited remains sole Operator and is now 80%-owner of the Reid's Dome Gas Project.
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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