The company today announced that it had completed a share placement to raise $1 million to continue exploration activities.
State Gas has made strong progress during its 2019 field season at the Reid’s Dome gas project in Queensland following a three-month program.
The production test provides the first production metrics for the Reid’s Dome Beds in the Bowen Basin region, essential data for understanding the gas potential of the coals and sands in PL 231.
The drilling and testing activities will wind-up in December, and production testing will continue into 2020, providing the data that State Gas requires to progress its target 2021 gas-to-market strategy.
The share placement was oversubscribed, resulting in investors being scaled back and the issue price of the new shares at $0.65 per share.
Following the success of the raising, State Gas is also preparing for the results of its Serovold-1 drilling campaign, set for release this month.
Production testing update is scheduled for February 2020, with the Nyanda-4 and Serocold-1 interim production test results being released.
Pipeline permitting will commence in 2020 with completion by November and gas contracting from October.