State Gas Limited Resumes Operations at Rolleston West Project
STATE GAS LIMITED (GAS) Share Update November 2024 Monday 18th
State Gas Restores Access to Rolleston West Project
State Gas Limited (ASX: GAS) has successfully resolved an access dispute, allowing it to resume gas production and exploration activities at the Rolleston West Project in Queensland.
Instant Summary:
- Settlement reached with landowner to resume operations.
- State Gas to continue its two-well exploration program.
- Legal action against the landowner discontinued.
- Mobilization of field teams to restart gas compression and exploration.
Background and Settlement
State Gas Limited had been embroiled in an access dispute with the landowner of the Rolleston West Project, which had temporarily halted its operations. On 18 November 2024, the company announced a settlement that allows it to resume its gas production and exploration activities immediately.
As part of the settlement, State Gas has agreed to discontinue legal proceedings against the landowner, provided that its access rights are maintained while the underlying issues are resolved. This agreement is governed by the Conduct and Compensation Agreement (CCA), which outlines the protocols for access to the well sites.
Operational Resumption
With the dispute resolved, State Gas is mobilizing its field teams to restart gas compression and exploration activities at the Rolleston West Project. The company plans to continue its two-well exploration program, which is critical for evaluating the viability of coal seam gas (CSG) production in the area.
Project Significance
The Rolleston West Project, wholly owned by State Gas, is a key asset in the company's portfolio. It focuses on assessing the potential for conventional and CSG production from the Bandanna Formation coals. Previous drilling programs have shown promising results, with significant gas content and quality.
State Gas aims to accelerate the commercialisation of its assets through innovative solutions, such as the virtual pipeline (VP) technology, which allows for the transportation of compressed gas by truck to pipeline infrastructure or directly to end users.
The resolution of the access dispute is a positive development for State Gas, as it allows the company to continue its exploration and production activities without legal hindrances. This is likely to bolster investor confidence and may positively impact the company's stock price. The ability to resume operations will enable State Gas to pursue its strategic goals and potentially enhance its market position in the east coast energy markets.
Investor Reaction:
Analysts are expected to react positively to the news, as the settlement removes a significant operational hurdle for State Gas. The company's proactive approach in resolving the dispute and its commitment to advancing its projects may be viewed favorably by investors.
Conclusion:
State Gas Limited's resolution of the access dispute at the Rolleston West Project marks a significant step forward in its operational strategy. Investors should keep an eye on the company's progress as it resumes its exploration and production activities, which could lead to promising developments in the near future.