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STATE GAS LIMITED — Capital/Financing Update 2023
Aug 27, 2023
64964_rns_2023-08-27_661f48fc-86ef-4b58-9eab-e84bc385ddb9.pdf
Capital/Financing Update
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State Gas Limited ACN 617 322 488 PO Box 10348 BRISBANE QLD 4000
ASX RELEASE
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28 August 2023
Extension to Share Purchase Plan Closing Date
In response to requests from shareholders, State Gas Limited (ASX: GAS) (“State Gas” or “the Company”) has agreed to a short extension of the closing date for Share Purchase Plan (“SPP”) applications to 31 August 2023. The Company has received strong support for the SPP and believes a short extension will afford remaining eligible shareholders the ability to submit the relevant paperwork in an orderly manner. No other terms of the SPP as described in the offer documents released on 9 August 2023 have been changed.
| Closing date for acceptances | 31 August 2023 |
|---|---|
| Announce results of SPP | 5 September 2023 |
| Issue SPP shares | 6 September 2023 |
| Normal trading of SPP shares commence | 7 September 2023 |
The above timetable is indicative only and subject to change without notice. The Company reserves the right to amend or vary any of these date in its absolute discretion, subject to the Corporations Act and the Listing Rules. The quotation of new shares is subject to approval from ASX. The Company reserves the right to withdraw the Placement (or any part of it) or the SPP without notice.
Executive Chairman, Richard Cottee said “The Company’s announcements during the SPP period regarding gas offtake arrangements and the timetable for construction of its CNG facility, demonstrates that it is on track for delivery of initial gas production in November 2023. Work towards completion and commissioning of the CNG facility has been continuing since announcement of the SPP. The SPP offer at $0.15 per share, presents an excellent opportunity for eligible shareholders to maintain exposures to the Company as it makes the important transition from explorer to early-stage producer and in the opinion of the Directors, reflects a significant discount to the inherent value in the Company’s assets.”
Eligible Shareholders can participate in the SPP by clicking on the link on the Company’s website: www.stategas.com. The SPP Offer Booklet is also available at https://events.miraqle.com/gas-spp and Eligible Shareholders can apply online and pay via BPAY. Any queries regarding the Offer should be directed to the GAS SPP offer information line on 1300 657 159 if calling within Australia or +61 1300 657 159 if calling from outside of Australia.
This announcement was approved for release by the Board of Directors.
FOR FURTHER INFORMATION:
Richard Cottee Executive Chairman Phone: 0458 517 850 Email: [email protected]
Doug McAlpine Chief Executive Officer Phone: 0488 007 889 Email: [email protected]
ABOUT STATE GAS LIMITED
STATE GAS LIMITED (ASX: GAS ) 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 1,595km[2] , 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.
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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.
ABOUT THE ROLLESTON WEST PROJECT
The Rolleston West Project (ATP 2062), is 100% owned by State Gas Limited and is focussed on evaluating the viability of conventional and coal seam gas (CSG) production from Bandanna Formation coals, which are extensive across large areas of this and adjoining permits. The capability to produce CSG at commercial levels has already been established at the Arcadia Valley field to the south-east, and at Mahalo to the north-east.
The recent drilling program undertaken in the eastern part of the tenement (Rougemont 1,2 and 3) has intersected approximately 8 metres of net coal, with the thickest seams laterally continuous over many kilometres. The gas content of the coals is between 5 and 6 m3/tonne dry ash free. Gas is at or near pipeline quality, between 93.8% and 96% methane.
Production testing has established sustainable commercial gas flow rates and confirmed excellent permeability within the targeted coal seams State Gas is seeking to expand the project (“Rougemont”) and move to early-stage production. The Company is currently evaluating a further step-out drilling campaign to confirm the continuity and permeability of the coal down dip of Rougemont 1 and 2 and establish initial gas resource and reserve estimates for the project.
ABOUT THE REID’S DOME PROJECT
The Reid’s Dome Project (PL 231) is targeting conventional and coal seam gas assets associated with the Reid’s Dome anticline, an area of sharply uplifted coals, shales and sandstone formations.
State Gas’ exploration activities have established in excess of 30 m of net coals, with gas contents averaging a very high 13.75m3/tonne dry ash free. Commercial levels of sustainable production of conventional gas have been established at the Nyanda4 well and the Company continues to evaluate a range of techniques to successfully liberate gas from the deeper formations.
The Company is now evaluating how to best develop Reid’s Dome in conjunction with Rolleston West to most efficiently leverage infrastructure and reduce operating costs.
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