Quarterly Activities/Appendix 5B Cash Flow Report
| Stock | State GAS Ltd (GAS.ASX) |
|---|---|
| Release Time | 31 Jul 2025, 2:57 p.m. |
| Price Sensitive | Yes |
Quarterly Activities and Cash Flow Report
- Successful drilling and completion of Rougemont-5 and Rougemont-6 wells
- Wells now in production testing process
- Engaged NSAI for reserve certification
- HDNG facility maintained in readiness for gas supply
State Gas Ltd (ASX: GAS) has released its quarterly activities and cash flow report for the period ending 30 June 2025. The key highlights include the successful drilling and completion of the Rougemont-5 and Rougemont-6 vertical wells at the Rolleston West Project (ATP 2062) in Queensland's Southern Bowen Basin. The wells intersected approximately 8 metres of net coal within the Bandanna Formation, confirming the lateral continuity of coal seams in the area. The company has now commenced production testing of these wells, with results expected to enhance both 2P reserve and 2C resource estimates for the project. State Gas has engaged Netherland Sewell & Associates Inc (NSAI) to prepare an independent reserve and resource certification for the Rolleston West Project, which is expected to be completed by the end of September 2025. This will support the company's application for a petroleum lease and enable negotiations for access to pipeline infrastructure. The company's HDNG facility at Rougemont has been maintained in readiness for the recommencement of gas supply. State Gas also provided an update on its financial position, noting that the balance of funding under the Frontier Gas Exploration Grant was received during the quarter, and the company is in the final stages of obtaining credit approval for funding secured against R&D claims related to the HDNG Pilot Plant. The company's outlook is focused on securing funding against the R&D claim and establishing the 2P reserve for the Rolleston West Project, which are seen as critical near-term priorities.
Funding secured against the R&D claim, and establishment of the 2P reserve for Rolleston West are the Company's critical near-term priorities. The positive exploration results achieved to date and the upcoming certification of Rougemont gas reserves both support the Company's previous comments that this will be an important and productive year for the Company.