• Maiden 2P gas reserve of 30.2 PJ independently certified for the Rolleston West Project
• Establishes a commercial reserve base capable of supporting the development of a pipeline-connected gas project
• Provides a platform for project financing, gas sales agreements and infrastructure partnerships

State Gas Limited (ASX: GAS) has announced the independent certification of a maiden proved plus probable (2P) gas reserve of 30.2 petajoules (PJ) for its Rolleston West Project in central Queensland. The reserve certification was provided by Netherland, Sewell & Associates, Inc (NSAI), an internationally recognised subsurface consultancy and reserves auditor, based on data from completed wells and extended production testing within the Project area, in conjunction with their independent geological and reservoir engineering evaluation. The NSAI assessment included an independent review of the Company's assumptions regarding development concept, well count, recovery factors, operating parameters and economic cut-offs consistent with current and anticipated east coast gas market conditions and infrastructure costs. The 2P reserve provides the strong economic foundation State Gas needs to advance detailed engineering, progress gas sales negotiations and identify infrastructure partners required to develop the Project. The Company now has the independently certified, bankable reserves that validate many years of geological work, drilling and production testing in this area. The development and operation of a long-life gas project in the Rolleston West area is deemed attractive, with the independently reviewed project feasibility model demonstrating attractive returns on capital required for the gas field development, an appropriately sized gas processing plant and permanent pipeline infrastructure that would connect the Rolleston West Project area to the Gladstone/Wallumbilla gas pipeline network.

The independently certified 30.2 PJ of 2P gas reserves have a gross undiscounted economic value in a range of $360 million to $510 million, assuming a gas sale price range bound by the current regulated Australian east coast gas price reference of $12 per gigajoule and the 2025 calendar year average LNG netback price of $17 per gigajoule.

State Gas is now focussed on converting this maiden reserve into cash-flow as quickly and prudently as possible, primarily through achieving key milestones such as completing concept and pre-FEED/FEED studies, progressing permanent production tenure applications and associated approvals, and advancing commercial discussions with potential gas offtakers.