The Queensland Government has issued new exploration permit ATP 2068 to a joint venture of State Gas Limited (ASX: GAS) (through its 100% subsidiary State Gas (CQ) Pty Ltd) (State Gas) and Santos QNT Pty Ltd (100% subsidiary of Santos Ltd, ASX: STO) (Santos).
This new permit grant follows the appointment in May 2022 of State Gas and Santos as Preferred Tenderers of two areas under the recent Queensland Government Petroleum Land Release Program1. Constituting approximately 702km2 , ATP 2068 (formerly PLR2021-1-2) is directly adjacent to State Gas' Reid's Dome (PL 231) and Rolleston-West Projects (ATP 2062) to the west and north, and the 50% Santos owned Warrinilla and Warrinilla North Projects (PL 451 and PCA 301) to the east.
The permit provides acreage connectivity between State Gas' Reid's Dome and the Santos interests to the east. The new permit area is highly prospective for coal seam gas in the Bandanna Formation, as well as containing targets for conventional gas. The Bandanna Formation is currently in production on Santos operated acreage to the east, and being tested by State Gas at its adjacent RollestonWest Project. Under the Joint Venture, State Gas holds 35% of the new permit, with Santos holding the remaining 65% and appointed operator. In addition to the economies of scale available from coordinating operations with Santos, the Joint Venture is expected to benefit from Santos' extensive experience in producing from Bandanna coal formations in the area.
The grant of ATP 2068 to the State Gas-Santos Joint Venture, to be followed (once native title processes are concluded) by the permit for PLR2021-1-3, results in an alignment of the partners' ownership interests across the gas resource in the majority of the southern Bowen Basin, providing the opportunity for coordinated and synergistic development of the whole region. The rapid grant of the permit, less than two months after appointment of Preferred Tenderers, will enable the parties to move quickly to commence activities on the area. Its proximity to existing projects and infrastructure will facilitate its development in due course. State Gas Executive Chairman, Mr Richard Cottee noted the increase in the Company's acreage position and portfolio.
'Over the last two years the Company has grown and diversified almost exponentially. From an initial position of 181 km2 , it added 1,414 km2 with ATP 2062 two years ago, and now it is adding a further 1,035 km2. ' 'Importantly, we have achieved significant diversification in our target resource, with several different coal seam gas plays, as well as both conventional shallow and tight gas plays. However, we have done so while maintaining a geographical focus in an area we are established and know well, thereby maximising knowledge, operational efficiencies, and enabling synergies', he said. 'We are creating greater optionality for both operations and marketing,' he added.
Contact:
Richard Cottee
Email: richard@stategas.com
ABOUT STATE GAS STATE
GAS LIMITED (ASX: GAS) is a Queensland-based gas exploration and development company focussing on the Bowen Basin in Central Queensland. State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) Gas Projects, both of which contain both 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 also holds a 35% interest in new permit ATP 2068 in joint venture with Santos QNT Pty Ltd (65%), and, also in the same joint venture, has been appointed Preferred Tenderer for an additional new exploration block PLR2021-1-3. These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the area, providing for an alignment of ownership interests across the region, enabling synergies in operations and development. None of State Gas' permits are restricted by domestic gas reservation requirements. State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet shortfalls in the east coast domestic gas market. State Gas is also undertaking a carbon management initiative with minerals explorer Rockmin solutions Pty Ltd in respect of EPM 27596 on the western border of ATP 2062. This project is investigating the potential of basalts in the Buckland Basaltic Sequence to provide long term secure sequestration of carbon through mineralisation2
Additional Information about Contingent Resources estimate The Contingent Resource estimates for the Reid's Dome and Rougemont Gas Projects (State Gas 100%) and State Gas' 35% interest in ATP 2068 and PLR 2021-1-3, were estimated utilising the probabilistic method with totals summed arithmetically and have not been adjusted for commercial risk. The Contingent Resource estimates are based on technical data for the permits, regional geologic and production interpretations, and in the case of the Reid's Dome and Rolleston-West Projects, data derived by State Gas from exploration activities on the permits, including reprocessing of seismic, drilling, core analyses, production testing and analyses of produced gas and water. Additional exploration and appraisal is required to address the contingencies associated with these resources to confirm commercial viability and areal extent. If the contingencies are successfully addressed, some part of the Contingent Gas Resources may be reclassified as reserves. The estimates of Continent Resources have not been risked to account for the possibility that the contingencies are not successfully addressed. The estimates reported relate to unconventional petroleum reserves. The details of the project area, the method of extraction and number of wells that may be required are not yet finalised. The Contingent Resources estimated have been prepared in accordance with the definitions and guidelines set forth in the SPE-PRMS 2018. The estimates reported are not contingent on technology that remains under development.
STAE GAS 