UPDATE ON INCREASE OF INTEREST IN PL 231
Brisbane, May 31, 2019 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (State Gas, the Company) refers to its previous announcements on 5 December 2018, 11 December 2018 and 8 February 2019 regarding its initiation of a process to increase its Participating Interest in the Reid's Dome Gas Project (PL 231) from 80% to 100% in accordance with the provisions of the Joint Operating Agreement (JOA) for PL 231.
The Company is providing an update on the proceedings commenced in the Supreme Court of Queensland on 8 February 2019 seeking specific performance by Dome Petroleum Resources Plc (Dome) of its obligations under the JOA.
As previously announced, Dome failed to complete the transfer of its remaining 20% Participating Interest in PL 231 to State Gas in accordance with the requirements of the JOA. State Gas's right to increase its Participating Interest arises under the provisions of the JOA which facilitate the acquisition of the remainder of a Participant's Participating Interest where that Participating Interest has reduced below 25% (Compulsory Acquisition). Dome's Participating Interest reduced below 25% when State Gas acquired 20% of its Participating Interest in PL 231 in November 2018, as announced on 28 November 2018 (the November 20% Acquisition).
In an attempt to avoid Compulsory Acquisition, Dome has filed a counterclaim in the court proceeding seeking to reverse the November 20% Acquisition. The counterclaim is being strenuously defended by State Gas and the Company remains confident of its position with respect to both its claim and Dome's counterclaim.
A mediation facilitated by a retired Supreme Court of Queensland and Queensland Court of Appeal Judge was attended by both parties on 30 May 2019. The matter was not resolved during mediation. The matter will now proceed to the Supreme Court of Queensland, with a trial date set for the latter part of the third quarter of 2019.
State Gas will continue to keep the market updated regarding any changes to the status and progress of the matter.
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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