Private Placement Completed for Corporate Initiatives
Brisbane, Feb 28, 2019 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) ("State Gas" or the "Company") advises that it has undertaken a private placement to sophisticated investors raising $500,000.
The purpose of the Placement is to fund:
- additional legal expenses associated with the increase in the Company's Participating Interest to 100% of the Reid's Dome Gas Project (PL 231);
- additional costs arising from the Company's increase in its Participating Interest in PL 231;
- legal expenses in relation to pursuing possible transactions arising from interest received from potentially interested parties; and
- further working capital.
As announced to the ASX during February 2019, the Company has received approaches and interest from a number of parties to progress the Reid's Dome Gas Project in both partnering (asset-level) and corporate (company-level) transactions. In line with the Board's aim to ensure that discussions include all qualified and interested counterparties, State Gas has recently appointed leading independent M&A/Advisory firm Highbury Partnership as financial advisor to help it assess and respond to inquiries from interested parties. Presentations, discussions and Q&As are continuing with parties under confidentiality arrangements.
The $500,000 placement has been conducted at a price of $0.85 per Ordinary Share, with settlement on or before Wednesday, 6 March 2019.
The placement funds will provide further resources for the important corporate initiatives currently underway during the remainder of FY2019.
To view figures, please visit:
http://abnnewswire.net/lnk/03ZDM8TW
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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