State Gas has welcomed the award of substantial new acreage west of Rolleston as a ‘company-maker’, saying it has the potential to quadruple its resource position.
The company has been appointed preferred tenderer for a 1414sq km block (Block 5) in the latest Queensland Government petroleum land release.
The land surrounds the northern part of the site where State Gas is developing the Reid’s Dome gas project.
Being contiguous with PL231 (Reid’s Dome), the addition of Rolleston-West would create a super-gas region, the company said.
“The new acreage has the potential to quadruple the company’s resource position, and the increase in scale will enable efficiencies and optionality in operations, management and marketing,” State Gas executive chairman Richard Cottee said.
Mr Cottee highlighted the significance of conventional and CSG targets within Rolleston-West, and the absence of restrictions on sale of the gas
“The existence of conventional gas, which can be much more easily turned up or down, alongside the CSG, should enable State Gas to better meet the increasingly volatile demand profile of the Eastern Seaboard gas market, as gas is increasingly used to support renewable generation,” he said.
State Gas will now carry out initial works to obtain the environmental and other approvals relevant to the area.
Mr Cottee said news of the award of Block 5 followed a new record flow rate to the south at Reid’s Dome from the Nyanda-4 well during the past weekend, approaching 500 mscf/day after just over eight weeks of de-watering.
“We are very pleased with both the excellent flow rates we are achieving at our 100 per cent-owned Reid’s Dome gas project, and that this exceptional new gas acreage extending our project area has been awarded to State Gas during the lead-up to such a critical time for the east coast gas market,” Mr Cottee said.
The company today announced a private placement raising $9.5 million and a share purchase targeting a further $2 million.
Funds raised will be applied to progressing the Reid’s Dome gas project and field work at the new Rolleston West gas project.