State Gas is a step closer to its goal of creating a ‘super-gas region’ in Central Queensland after securing a new round of funding for its Reid’s Dome project.
The company this week increased a share purchase plan, which will be used to fund evaluation works at the Reid’s Dome gas project, from $2 million to $4.9 million.
State Gas made this decision after receiving strong support from its shareholders, having received valid applications from 246 of 719 eligible shareholders.
Combined with a $9.5 million private share placement during October, the latest funding gives State Gas $14.5 million for its work program at Reid’s Dome.
Additionally, the funding will allow State Gas to commence drilling and testing at the nearby Rolleston West project, shortly after its recent award by the state government.
Proceeds from the share purchase plan will also be used to fund further planning and approvals activities for the gas pipeline and other related infrastructure to export gas from the neighbouring PL 231 and ATP 2062 projects.
State Gas executive chairman Richard Cottee said the entire funding proceeds “not only strengthens our resolve to meet our target 2022 objectives, but also enables the company to take its first steps to creating a new ‘super-gas region’ within our wholly owned acreage at a time of national need.
“The share purchase plan provided eligible shareholders with an opportunity to increase their investment and was a resounding vote of confidence in State Gas,” Cottee said.
The Reid’s Dome gas field was discovered in 1955. It is known for its extensive beds of Permian coal measures but had not been explored for coal seam gas prior to State Gas taking ownership of the site.
State Gas is implementing a plan to bring gas from Reid’s Dome, as well as Rolleston West, to market to meet near-term forecast shortfalls in the east coast domestic gas market.