UPDATE ON INCREASE OF INTEREST IN PL 231
Brisbane, Dec 11, 2018 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) hereby provides clarification following its announcement on 5 December 2018 of its initiation of the process to increase its Participating Interest in the Reid's Dome Gas Project (PL 231) to 100% in accordance with the provisions of the Joint Operating Agreement (JOA) for the PL 231 Reid's Dome Joint Venture.
As advised on 5 December, State Gas has elected to increase State Gas's Participating Interest in the project through the provisions of the JOA which allow a Participant to acquire the Participating Interest of another Participant if that other Participant's interest in the project falls below 25%. On 4 December 2018, State Gas issued the relevant notices to commence the process to acquire the 20% interest in Reid's Dome Gas Project held by Dome Petroleum Resources Plc in accordance with the terms of the JOA.
State Gas is aware of recent comments made by Dome to the Australian media asserting that State Gas is not entitled to acquire Dome's remaining 20% stake in the project. State Gas, via its legal advisors, has written to Dome today rejecting this assertion and confirming that the notices issued on 4 December 2018 under the JOA are valid and enforceable.
State Gas has at all times acted both lawfully and appropriately and will continue to do so. Further updates will be provided on or before completion and settlement of these arrangements. State Gas Limited remains sole Operator and, upon completion and settlement of these arrangements, will hold 100% of the Reid's Dome Gas Project and PL 231.
The Company looks forward to progressing the remaining test work for the Nyanda-4 well samples and entering the next phase for 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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