State Gas Limited (GAS.AX) Annual Report to Shareholders
Brisbane, Australia, Sep 16, 2020 - (ABN Newswire) - During the year, State Gas Limited (ASX:GAS) successfully embarked on the production testing of Nyanda-4 in the southern portion of the 100% owned PL231, Serocold-1 in the central portion and testing of Aldinga East-1A in the northern reaches. All of these have shown CSG presence across Reid's Dome, surely making PL231 a new CSG province which, with the further work envisaged this year should see PL231 become highly productive. Flow rates exceeding 230mscf/d at Nyanda-4 have been particularly encouraging for an open hole completion with no sentinel wells in little over 8 weeks of de-watering.
The existence of conventional gas at Reid's Dome alongside the CSG should enable State Gas to better meet the increasingly volatile demand profile of the Eastern Seaboard gas market. This demand-volatility is being caused by the increasing use of gas for intermediate/peak power as the need for dispatchable electricity increases to offset the intermittency inherent in renewable electricity. Nothing beats optionality in times of volatility.
The Federal Government's recently announced energy policy highlights the key role natural gas will play in the post COVID-19 recovery phase for the national economy. It is the company's intention that State Gas will play its role in this national objective. Commissioning the production facilities in late 2022, and selling gas in 2023 - the very year in which a critical shortage is forecast to eventuate.
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About State Gas Limited:
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field (PL 231), which includes both CSG and conventional gas, originally discovered in 1954 during oil drilling prior to the existence of a pipeline network and an east coast gas market. The Reid's Dome field is located in the Bowen Basin in Central Queensland on the apex of the Springsure-Sericold Anticline. State Gas is sole Operator of PL 231, which is well-located 30 kilometres southwest of Rolleston, approximately 47 kilometres from the Queensland Gas Pipeline.
Chief Executive Officer
Phone: 0439 608 241
Phone: 0458 517 850
State Gas Limited
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