State Gas Advances Rolleston West Project

State Gas Limited (ASX: GAS) has commenced its exploration program at the Rolleston West Project (ATP 2062), aiming for a maiden 2P reserve of 30-50 PJs. The program, fully funded by a $5.5 million Queensland Government grant, involves drilling two new vertical wells near Rougemont 2/3, an area with proven gas content and permeability. A critical aspect of this program is the immediate capture and commercialization of production testing gas via State Gas’ high density natural gas (HDNG) plant. This reduces the Company’s fugitive emission profile while generating revenue. Successful drilling and testing results will support the accreditation of the targeted 2P reserve, a vital step in demonstrating the project’s commercial viability. The establishment of a 2P reserve is crucial for securing a petroleum lease over a substantial portion of ATP 2062 and facilitating discussions with potential end users and pipeline infrastructure providers to connect Rolleston West to the Gladstone to Wallumbilla network. The HDNG plant, a ‘first of its kind’ in Australia, further enhances the project’s environmental and economic benefits by enabling the commercialization of gas that would otherwise be released into the atmosphere. The project underscores State Gas’ commitment to efficient gas development and supporting east coast energy markets.