State Gas Limited (STGSF) CNG Asset Commissioning Update
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is pleased to provide an update on the commissioning and construction of its compressed natural gas ("CNG") facility to support ongoing testing and early-stage gas sales from its Rolleston West (ATP 2062) project in the southern Bowen Basin.
Utilising its virtual pipeline trucking approach, the Company intends to commence shipping CNG to end users in the Bowen Basin in late November 2023.
The Company will shortly execute a construction contract for the CNG facility and associated works with Wasco (Australia) Pty Ltd ("Wasco"). State Gas and Wasco have been working together over the last eight months to design and engineer the CNG facility to support the compression of up to 1.7TJ/day of gas. Gas will be sourced from the Rougemont 2/3 lateral well system ("Rougemont 2/3") which produced strong production testing results during the period of February 2023 to May 2023. The Company expects that when connected to the CNG facility, Rougemont 2/3 could produce up to 0.75TJ/day of CNG which will support modest initial revenues and cashflows for the Company.
Wasco and the Company are committed to a rapid construction and commissioning timetable of ten weeks, subject to weather. All components necessary for the CNG Plant have passed factory acceptance testing at Wasco's Brisbane yards. State Gas is working closely with the landowner to identify the most efficient date to commence field activities, but we anticipate mobilisation for initial civil works as early as next month.
Executive Chairman, Richard Cottee said "Now that the relevant funding has been secured, the Company can move forward with confidence and make the important transition from explorer to early-stage producer.
Our partners Wasco have enabled us to deliver a flexible, low-cost production solution that will enable State Gas to conduct further production and appraisal testing of the Rolleston West project, but more importantly start generating initial cashflow for the Company. The Company is now focussed on the rapid execution of the construction and commissioning process."
Doug McAlpine Chief Executive Officer Phone: 0488 007 889 Email: doug@stategas.com Richard Cottee Executive Chairman Phone: 0458 517 850 Email: richard@stategas.com
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