State Gas Ltd (ASX:GAS) – QLD
State Gas Limited (State Gas) has a 60% interest in, and is operator of, a petroleum lease (PL 231) in central eastern Queensland, approximately 545 km northwest of Brisbane and 50 km southwest of Rolleston.
Prior to October 2017, State Gas was a wholly owned subsidiary of Triangle Energy holding the 60% interest in PL231 (Reids Dome). To ensure the development of this asset, State Gas lodged a Prospectus to raise $5.25 million via an initial public offering (IPO) and seek admission to the official list of the ASX.
Following a successful IPO, State Gas listed on the ASX, with Triangle holding the largest stake in the company with an interest of 35.47%, worth $16.7 million at $0.35 (11 October 2017).
PL 231 hosts a conventional gas project located in the Denison Trough, first discovered in the 1950s. PL 231 is not a coal seam gas target. The primary area of focus for State Gas is the shallow, conventional gas target in the Cattle Creek Formation, a marine sandstone source rock, with a major secondary target in the underlying Reids Dome beds. Both targets have produced gas during the drilling of exploration and appraisal wells on PL 231. A number of historical wells have flowed gas from the Cattle Creek Formation, which was reached at shallow depths of 130 metres.
In order to accelerate the options for bringing gas from PL 231 to market, State Gas has recently lodged a pipeline survey licence application with the Queensland Department of Natural Resources and Mines (PSL 2028) with the intention to investigate suitable routes for a feeder pipeline to connect PL 231 with the Queensland Gas Pipeline and the broader east coast gas market.