State GAS Ltd

The ATO completed its review of the FY2024 R&D claim and confirmed the costs claimed. $4.1M will be released before end-July 2026 and used to repay all working capital loans, resolving the open R&D thread; the remainder goes to cash reserves.

other

Directors decided not to proceed with an unsolicited offer to buy the HDNG pilot plant plus a long-term gas supply deal, as terms could not be agreed. The ATO is seeking more information on the FY2024 R&D claim, which was expected to finish by 31 March 2026.

asset acquisition disposition

ASX waived Listing Rule 10.1, letting State Gas give directors St Baker and Stretch second-ranking security over all its assets for new working capital facilities and their earlier loans. The company says other lenders declined to advance debt funding. Security is behind an R&D funder.

debt financing

State Gas has firm commitments for $3.2 million of unsecured convertible notes, convertible at $0.04, a 33% premium to the closing price, plus attaching $0.05 options. Directors will convert $0.5 million of loans. Issue needs shareholder approval in 2026; funds are treated as loans until then, and fund pre-development at Rolleston West.

capital raising announcement

NSAI certified a maiden 2P gas reserve of 30.2 PJ (44.1 PJ 3P) for Rolleston West, resolving the reserve report due end September. The company cites gross undiscounted value of $360-510 million and a 10 TJ/d pipeline-connected project; no 1P reserves are included.

resource reserve update

Rougemont 5 and 6 are completed with pumps installed, and dewatering and production testing can start. Each found 7.8 m of net coal. Results feed the resource model for an initial 2P reserve; the $5.5M Queensland grant fully funded the drilling.

drilling result

Correcting its quarterly report, State Gas says it had 0.44 quarters of funding at 31 March 2025, not zero. It sets out a plan: grant funding, R&D claims with possible secured financing, an insurance recovery, and HDNG sales. Six-truck HDNG supply could start as early as Q2 FY26, and staffing has been cut.

other

The Rolleston West landowner has again blocked access to the project assets, including the two partially complete Rougemont wells. State Gas says this breaches the access agreement and is going to the Land Court of Queensland to restore access. Repeats the November 2024 blockade.

regulatory community update

Rougemont 5 reached 579 m, logging 7.8 m of net coal from about 419 m with elevated gas shows, matching Rougemont 6. Confirms coal continuity across the area; both wells now to be completed and flow tested, by mid-May 2025, toward the maiden 2P reserve.

drilling result

Rougemont 6 reached 572 m, intersecting 8.1 m of net coal from about 404 m with elevated gas shows. It confirms coal continuity 1.5 km north-east of Rougemont 2/3, supporting the 30-50 PJ maiden 2P target. Rig is moving to Rougemont 5.

drilling result

Rougemont 5 and 6 wells spudded, ending the delay from the access dispute. Rougemont 6 had surface casing set at 152 m and a target depth of 540 m. The two-well program is expected to finish by end of May 2025.

drilling spud

The 18-day landowner access block left the Rougemont 2/3 well needing a further six to eight weeks of dewatering. HDNG deliveries were suspended without penalty until late Q1 2025, and the drilling campaign was deferred to the March-April 2025 weather window.

production update

The landowner at Rolleston West has blocked State Gas's access to its wells and compression facility, which the company says breaches the access agreement. It is considering legal options. This puts HDNG supply and the grant-funded drilling at risk (inference), though no impact is stated.

regulatory community update

Chairman Richard Cottee will not stand for re-election at the November AGM after five years as a director. Philip St Baker is to become Chair if re-elected. This follows Cottee's September move to non-executive chairman.

director officer appointment

The retail entitlement offer closed, raising about $0.9 million (18.1 million shares at $0.05). Total raised is about $5.25 million, plus $660,371 from director placement shares needing shareholder approval. This is well short of the up to $8.9 million targeted in August.

capital raising announcement

CEO Doug McAlpine joins the board as Managing Director, and Richard Cottee steps down as Executive Chairman to become Non-Executive Chairman. Daniel Marcus, a mining executive, is hired to lead alternative fuels (HDNG). The company says the aim is to become cash positive.

director officer appointment

State Gas is raising up to about $8.9 million at $0.05 per share: a roughly $2.0 million placement and a roughly $6.9 million 1-for-2 entitlement offer, with a free 1-for-2 option at $0.08. The price is a 46.8% discount to the last close, and the funds finish the HDNG plant costs and provide working capital. Much cheaper than the $0.15 raise of August 2023.

capital raising announcement

State Gas shipped its first cargos of high-density natural gas (HDNG) to the Central Queensland coal mine under the 5 April 2024 offtake, resolving the long-delayed first-sales thread. Volumes are to rise over coming weeks; the company says supply will be at a premium to spot gas.

production update

State Gas was awarded $5.5 million from Queensland's Frontier Gas Exploration Grants Program to drill two vertical appraisal wells next to Rougemont 2/3. Aim is a maiden 2P reserve and a petroleum lease application. This funds the planned step-out drilling without a share issue.

material agreement

State Gas signed an initial CNG supply contract with Thiess for a hybrid mine-truck trial at Curragh Coal Mine, initially two trucks, at a premium to spot gas. First shipment is expected mid-April 2024. This is the first binding offtake, following the earlier non-binding MOUs.

material agreement

The CNG facility reached mechanical completion and commissioning began, 92 construction days from 19 October 2023 with no lost-time injuries. Rougemont 2/3 is dewatering again with higher water rates than before, suggesting gas above the prior 474,000 cubic feet per day. First sales are not yet dated.

production update

Weather and difficult ground added about three weeks to CNG construction, with equipment compliance fixes within contingency. Commissioning is now by Christmas and first sales in January 2024, slipping from late November 2023 and the earlier July target.

production update

The Share Purchase Plan raised $2,385,094 from 163 of 1,429 eligible holders, below the $3 million target, with 15,900,675 shares at $0.15 to be issued 6 September. Funds go to additional drilling and working capital.

capital raising announcement

State Gas signed non-binding MOUs for its CNG. Mine Energy Solutions will take CNG as exclusive supplier for mining-truck dual-fuel engines. Denison will jointly build an intake facility at its Rolleston plant and buy up to 1.0 TJ/day. This gives a first path to market, with sales from November 2023.

material agreement

State Gas will shortly sign a construction contract with Wasco for the CNG facility, with a ten-week build. CNG shipments are now expected from late November 2023, later than the July 2023 target. Rougemont 2/3 could supply up to 0.75 TJ/day.

contract award

State Gas raised $5 million in a placement at $0.15 per share, well below October 2022's $0.28 placement. A Share Purchase Plan of up to $3 million at the same price follows. Funds go to the CNG facility, one more well, repaying director loans and working capital.

capital raising announcement

June quarter: the CNG facility will be built on the eastern side of ATP 2062 (Rougemont), not at Reid's Dome, with about three months to build. Pressure testing supports 0.75-1.0 TJ/day, and a 20-30 PJ 2P reserve is targeted. Funding for the remaining CNG construction is still being sought, so the July first-gas target is not met.

quarterly activities report

Rougemont 2/3 has shown a stable gas flow of about half a TJ per day with good coal permeability. The company will shut the well briefly for pressure build-up testing, then reopen it once the CNG facility is relocated to serve Rougemont and Reid's Dome.

well test result

Rougemont flow exceeded 457,000 cubic feet per day. The CNG compressor was delayed by quarantine fumigation, so first CNG gas now slips from March to about July 2023, versus the earlier Feb/Q1 target. Queensland approved changes to the PL 231 environmental authority on 17 March.

production update

Rougemont flow passed 350,000 cubic feet per day, rising 15-20,000 per day with coals still covered. State Gas is pursuing rapid reserve certification to support a roughly 20km pipeline, and may temporarily move the CNG compressor from Reid's Dome to Rougemont.

flow test result

Rougemont-2/3 gas flow doubled to over 100,000 cubic feet per day, with coals still under 120m of water. ATP 2069 was also formally granted in the 35% Santos joint venture, resolving the pending native title wait.

flow test result

Rougemont-2/3 reached early gas flow above 50,000 cubic feet per day on 14 February 2023, with the well surging gas and water. The water level is still 170m above the coal seams. This is the first measured gas rate from the test begun in November.

flow test result

Doug McAlpine appointed Chief Executive Officer on a $300,000 base salary, plus $50,000 of shares and performance rights tied to first gas delivery, pipeline decision, gas sales, a 70c share price and a change of control. Greg Baynton moves to non-executive director; Cottee remains Executive Chairman.

director officer appointment

Rougemont-3 drilling is finished and the rig released. The second lateral had 1,130m in coal (97%), and both laterals give ~2,400m of reservoir access, with gas shows averaging ~20%. Initial gas flows are expected in 2-3 months after the Rougemont-2 pump is replaced. Shows are not flow rates.

drilling result

State Gas raised $7.0m through a placement of 25,000,000 shares at $0.28, a 20% discount to the last price of $0.35. Trevor and Philip St Baker invest, taking their group to ~12%. Jon Stretch and Philip St Baker join the board. Funds go to Rougemont drilling and testing, CNG trucking and pipeline planning. Directors' $0.18m portion needs AGM approval.

capital raising announcement

Rougemont-3 was spudded on 16 September, with the rig at 63m installing surface casing. Two laterals totalling ~2 km in-seam will be drilled to meet Rougemont-2, then the pair tested together. Confirms the spud expected in the 12 September notice.

drilling spud

The rig is mobilising to drill Rougemont-3, a horizontal well with two laterals aiming to intersect Rougemont-2 and give ~2 km of in-seam length. Spud is expected within the week. This is the demonstration well planned for Aug/Sep, and the production test follows.

drilling spud

State Gas plans to truck compressed gas from Reid's Dome about 60km to the pipeline network, targeting first sales of ~1 TJ/d in early 2023. Initial sales go to the spot market; a physical pipeline follows. This would be its first revenue and brings forward the first-gas timing.

production update

Queensland granted ATP 2068 (~702 km2) to the State Gas-Santos JV, under two months after preferred tenderer status. State Gas holds 35%, Santos 65% as operator. The second block, PLR2021-1-3, awaits native title resolution.

asset acquisition disposition

State Gas and Santos, in a joint venture, were named preferred tenderers for two new Bowen Basin blocks totalling 1,035 km2. State Gas holds 35%, Santos 65% and operates. This lifts State Gas acreage about 60% to 2,630 km2; no domestic gas reservation.

farm in farm out agreement

Strategic review prioritises developing conventional Aldinga gas via a pipeline through Rougemont to the Rolleston compressor station, with Nyanda later. A horizontal well at Rougemont is planned next quarter; a first economic review is due in the September quarter.

other

State Gas completed an A$8 million placement of 25 million shares at $0.32, a 15.8% discount to the last close and 21.6% below the 30-day VWAP. Funds go to Rougemont-2 production testing and more drilling, Nyanda-8 and Serocold-1 testing, Reid's Dome development, and working capital.

capital raising announcement

First contingent gas resources: Rolleston-West East Bandanna Fairway 53/91/161 PJ (1C/2C/3C) and Reid's Dome 74/126/223 PJ. Rougemont lab gas content is 5.15-6.20 m3/tonne and over 96% methane. Rougemont-2 production testing starts shortly. This is the long-awaited resource booking.

resource reserve update

A production log at Nyanda-4 shows gas coming from below 1,150m as well as from 400-600m, which the company says supports its view that deep coals can produce unaided. Nyanda-4 is at 138,000 cf/d; Nyanda-8 at 38,000, Nyanda-7 at 7,000.

well test result

Rougemont-2 drill-stem tests show permeability that exceeded all expectations, and initial gas analysis suggests near-pipeline quality. The well is suspended pending production testing, and appraisal drilling is being planned. Reid's Dome wells flow over 220,000 cf/d combined, Nyanda-4 at 140,000.

drilling result

Rougemont-2 reached 540m, with coals from about 295m (roughly 200m shallower than Rougemont-1) and 8m net coal, gas bubbling from cores. Field values suggest commercial gas content, matching Rougemont-1's 8m. Lab gas contents and further tests still to come.

drilling result

Rougemont-1 reached 800m on 23 May, intersecting 8m of net coal with top coal at 495m and gas bubbling from cores. Early field readings are in line with the nearby Arcadia Valley and Mahalo Bandanna projects. Gas content and permeability testing is still under way.

drilling result

Rougemont-1 spudded 14 May, the first well on the new Rolleston-West permit (ATP 2062), targeting Bandanna coals at a planned 800m. Serocold-1 reached 35,700 cu ft/day, and Nyanda-4 is back up to 114,000. The first drilling on the new acreage.

drilling spud

Nyanda-4 produced 620,000 cubic feet in 24 hours, exceeding earlier test rates, which were cut short by pump breakdowns. Nyanda-8 is at 31,000 cu ft/day and Nyanda-7 at 5,000. Serocold-1 workover rig is on site. This is the strongest Reid's Dome flow so far.

well test result

Nyanda-8 reached 1,200m on 3 January with 19.7m net coal and open fractures. With Nyanda-7, results are within the range expected from Nyanda-4. The rig stands down for the wet weather; all three wells should be dewatering by end January.

drilling result

Further evaluation puts Nyanda-7 at 38.2 m net coal, with seams and gas shows similar to Nyanda-4 and numerous open natural fractures. The well is cased and suspended awaiting completion; the rig is moving to Nyanda-8.

drilling result

Nyanda-7 spudded on 15 December, the first Phase 2 well, a step-out about 2.6 km north of Nyanda-4 with planned depth of 1,200m. At least three more wells follow, weather permitting; two Rolleston-West coreholes are planned for the New Year.

drilling spud

The share purchase plan closed oversubscribed: about $4.9M of valid applications from 246 of 719 eligible holders, against a $2M target, and all were accepted. Combined with the $9.5M placement, State Gas has almost $14.5M for Phase 2 drilling and Rolleston-West.

capital raising announcement

State Gas signed a Letter of Intent with Silver City Drilling for Rig 25 to drill at least four Phase 2 production wells at Reid's Dome. This rig drilled Primero West-1, Nyanda-4 and Serocold-1. Drilling is expected this quarter, weather permitting; a second rig is under discussion.

contract award

Authority to Prospect 2062 (Rolleston-West) was granted on 1 October, within a fortnight of State Gas being named Preferred Tenderer. This resolves the pending grant and lets work start on the 1,414 km2 block next to PL 231, including the planned Rougemont-1 well.

regulatory community update

After Nyanda-4 flowed near 500,000 scf/d, State Gas plans Phase 2 drilling by mid-November: at least four step-out wells, with two optional extras. Nyanda-4's test is suspended until they are drilled; Serocold-1 (47% of targeted coals below pump) will be suspended. Rougemont-1 is planned at Rolleston-West.

drilling scheduled

State Gas raised $9.5M via a placement of 17,272,730 shares at $0.55 to investors including Trevor St Baker, plus a targeted $2M share purchase plan at $0.55. Funds go to drilling at least three new wells and studies. This is its first raising since the roughly $0.65 placements in December 2019.

capital raising announcement

State Gas was named Preferred Tenderer, on a 100% basis, for the 1,414 km2 PLR2020-1-5 (Rolleston-West) acreage, contiguous with PL231 and eight times its size. The company says it could quadruple the resource position. Grant of the permit is still to come. Also notes Nyanda-4 approaching 500 mscf/d.

asset acquisition disposition

Nyanda-4 flow jumped above 240 mscf/d overnight, passing the 227 mscf/d January peak, after eight weeks of dewatering with the Canadian-built pumps. This supports the producibility of the Reid's Dome coal seam gas and resolves the earlier pump-failure setback.

well test result

State Gas says Phase 1 appraisal is complete, with coal seam gas confirmed over at least 12km north to south and gas produced at all three wells. It has commissioned Netherland Sewell to certify first resources, due by late September 2020. Serocold-1 is at 13 mscf/d and Nyanda-4 above 70 mscf/d.

resource reserve update

Management restructure: Mike Herrington becomes Chief Operating Officer, and Lucy Snelling moves from CEO to Head, Corporate and Commercial, both reporting to Cottee. Pump failures were traced to swelling of the pump rubber parts; new pumps are being made in Canada, with gas flowing again expected mid-to-late July.

director officer appointment

Chairman's letter says the company is cutting board and management pay and supplier costs, and tightening focus on reserve-building. First gas is now delayed from 2021 to 2022, which the board attributes to recent events. Both wells are expected to be dewatering again by end of April.

other

A flow audit found faulty metering equipment, so previously announced Nyanda-4 rates were overstated; the rate is 120 mscf/d on 13 January, about 2,000 mscf produced in total. This corrects the 156 and 436 mscf/d figures. NSAI engaged as reserve certifier.

production update

After the Nyanda-4 results, State Gas accepted a further $500,000 of subscriptions at the same $0.65 per share (about 0.77 million shares), taking the December raising to about $1.5 million. Funds are for additional testing and 2020 pilot planning.

capital raising announcement

Nyanda-4 was producing 156 mscf/day after two weeks on test, with minimal water. Serocold-1 reached 1,200m with about 27m of net coal and promising permeability. Its production test is expected to start mid to late January.

production update

State Gas raised about $1 million through an oversubscribed placement at $0.65 per share (about 1.5 million new shares), led by Morgans. Funds go to assessing the drilling campaign and planning the 2020 pilot program. The price is below June's $0.70 placement.

capital raising announcement

Queensland Court of Appeal struck out Dome's appeal against the 16 September judgment, with indemnity costs to State Gas. This resolves the open thread: State Gas states its ownership of PL 231 is confirmed at 100%, with Dome's 20% transferring for $233,333.

joint venture update

Aldinga East-1A logging found 10-14m of net coal and a new conventional gas pool in about 9m of Cattle Creek sand, plus a further 9m of gas sand deeper (18m total to 802m). Well suspended for drill stem tests; Serocold-1 design under review.

drilling result

Final Nyanda-4 gas content is 13.75 m3/t average from 10 samples, replacing all prior figures including the 14.6 m3/t reported in July. The thickest seam is 16.94 m3/t. This is a small downward revision to the earlier average.

resource reserve update

Coring at Aldinga East-1A finished; the 563.5-649m interval had coal seams and a conventional sandstone reservoir, with gas bubbling from both. Gas then flowed vigorously from the well, so mud weight was raised. Company believes it comes from sandstone and may help project economics.

drilling result

Aldinga East-1A, the first well of the 2019 program, spudded on 4 October 2019 using Gas Field Services Rig 12, to a planned 1,200m in the northern part of PL 231. Serocold-1 follows. It is the first drilling since Nyanda-4 in 2018.

drilling spud

Supreme Court ordered Dome to transfer its final 20% of PL 231 to State Gas at the JOA-fixed price of $233,333, with costs on an indemnity basis. This resolves the trial set for September and moves State Gas from 80% toward 100%.

joint venture update

State Gas sets a 'Target 2021' plan for first gas in 2021: two new wells, Aldinga East-1A and Serocold-1, each to 1,200m, starting late Q3 2019. At least two production tests are planned to start in Q4 2019 and run 3-6 months, plus seismic reprocessing and pipeline route study.

drilling scheduled

Richard Cottee, former Managing Director of Queensland Gas Company (2002-2008), becomes Executive Chairman. Tony Bellas moves to non-executive director. Cottee's pay is mainly up to 5,000,000 performance rights tied to milestones including a Reid's Dome work program and a change-of-control deal.

director officer appointment

State Gas completed a $4.9 million placement at $0.70 per share to a single sophisticated investor, settling by 14 June 2019, with no fees. Funds go to further Reid's Dome drilling and appraisal, to be done before the wet season. Announced alongside Cottee's appointment.

capital raising announcement

Dome filed a counterclaim seeking to reverse State Gas's November 2018 purchase of 20%, so the 80% holding is now also challenged. Mediation on 30 May 2019 failed; trial is set for the latter part of the third quarter of 2019. State Gas says it is confident.

joint venture update

Offers eligible shareholders a Security Purchase Plan of up to $15,000 each, opening 4 March 2019, alongside a company update. Restates the drilling results, 80% interest (registered 4 January 2019), the court action against the 20% holder, and ongoing talks with interested parties.

capital raising announcement

State Gas raised $500,000 from sophisticated investors at $0.85 per share, settling by 6 March 2019. Funds go to legal costs for the move to 100% of PL 231, costs of pursuing possible transactions, and working capital.

capital raising announcement

Dome Petroleum failed to transfer its 20% stake, so State Gas started Supreme Court of Queensland proceedings seeking specific performance. The dispute flagged in December is now in court, and the path to 100% remains unresolved.

joint venture update

Responding to ASX after shares rose from $0.72 to $1.00, State Gas said it knows of no undisclosed information. It confirmed it has been approached by several parties about possible transactions and is in preliminary talks with some.

price query

The 20% holder, Dome Petroleum Resources, publicly disputes State Gas's right to buy its stake. State Gas rejected this through its lawyers, saying the 4 December notices are valid. The move to 100% is now contested.

joint venture update

State Gas began the process under the joint operating agreement to lift its PL 231 interest from 80% to 100%, issuing notices to acquire the remaining partner's stake once it fell below the minimum interest. Completion not yet reached.

asset acquisition disposition

Nyanda-4 was extended from 1,000m to 1,200m and suspended for re-entry rather than abandoned. It found 38m of net coal, gas shows from ~392m, ~100psi over-pressure and light oil in sandstones. The chairman says results far exceeded expectations; lab work continues.

drilling result

State Gas raised its PL 231 interest from 60% to 80% by acquiring 20% from its partner, offset against cash calls the partner owed. It now carries 80% of costs including Nyanda-4. Remains operator.

farm in farm out completion

Nyanda-4 spudded on 22 November 2018, 13.5km south of Primero West-1, planned to 1,000m to test tight gas and coal seams. State Gas pays 60% of costs; first coal seam gas test of the permit.

drilling spud

Primero West-1 spudded on 10 November 2018 using Silver City's Rig-25. This begins the company's first drilling on PL 231 since 2006 and the well that completes its sole JV funding obligation.

drilling spud

Silver City Drilling engaged to drill Primero West-1 (250m, Cattle Creek gas sand) from November 2018, then Nyanda-4 (1,000m) to test coal seam gas and tight gas, subject to joint venture approval. First drilling on the permit since 2006; the plan now adds coal seam gas to the earlier conventional targets.

drilling scheduled

Reid's Dome North-West-1 will be drilled in the September quarter 2018 to test the north-west gas prospect, which may span multiple zones to about 500m. Drilling will complete the company's sole funding obligations under the PL 231 joint operating agreement. Southern seismic reprocessing is also expected that quarter.

drilling scheduled

Seismic reprocessing of the northern area of PL 231 found a new potential shallow gas pool in the north-west, at about 220m. Two to three existing wells look enough to produce the Central North pool. Southern reprocessing is under way; the company is investigating ways to monetise the gas.

drilling scheduled

Lucy Snelling, formerly of AGL Energy, appointed as State Gas's first CEO on a half-time, two-year contract at $170,000 base. She gets 1,000,000 options at $0.40 and 1,000,000 at $0.60, subject to vesting conditions.

director officer appointment

Flow tests on three historical wells (Primero-1, Aldinga North-1, Reid's Dome-4) found all still flowed gas, at lowest stabilised rates of 357,000 to 658,000 cf/d. Gas is about 96% methane, similar to pipeline quality. Completes the flow-testing planned at listing; seismic reprocessing due February.

flow test result

State Gas issued a prospectus to raise $5.25 million by offering 26,250,000 shares at $0.20 each, ahead of an ASX listing. Funds are for developing its PL 231 gas project in Queensland; the prospectus calls the investment speculative.

capital raising announcement

State Gas was admitted to the ASX Official List on 9 October 2017. Quotation of 29,299,999 shares issued at $0.20 starts the next day.

other