State Gas Limited (ASX:GAS)

Lucy Snelling
Market Cap (AUD): 37.97M
Sector: Energy
Last Trade (AUD): 0.17 -0.02 (-10.53%)
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1. About

State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reids Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. 

State Gas is 100%-owner of the Reids Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.

Permian coal measures within the Reids Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reids Dome Beds and established the potential for a significant coal seam gas project in PL 231. 

The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Companys drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).

State Gas is also the100% holder Authority to Prospect 2062 (Rolleston-West), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reids Dome Gas Project. With CSG confirmed in the initial two wells drilled by State Gas, Rolleston-West is known to contain highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. Neither project is restricted by domestic gas reservation requirements.

The contiguous areas (Reids Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gas field development, providing economies of scale, efficient operations, and optionality in marketing. State Gas is implementing its strategic plan to bring gas to market from Reids Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market.

During 2020 and 2021, State Gas has focused its efforts on confirming the producibility of the gas through production testing of the wells.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk