State Gas Limited Restores Rolleston West Access, Paving the Way for Accelerated CSG Exploration and Flow Testing Initiatives

Thursday, June 5, 2025
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9:26 am
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State Gas Limited has secured land access at its Rolleston West Project, allowing it to resume exploration. The company is mobilizing teams to drill new wells and start flow testing, marking a significant advancement in its efforts to commercialize promising gas assets in Queensland.

State Gas Limited has resolved its access issues at the Rolleston West Project, following an agreement reached on 4 June 2025 with the landowner. This development now allows the company to immediately resume its exploration activities on the disputed property, while the underlying disagreements continue to be addressed through legal proceedings. The firm is mobilizing its field teams to complete two new exploration wells and commence flow testing by the end of the month, signaling a renewed focus on accelerating exploration and production. The company, based in Queensland and active in the southern Bowen Basin, remains committed to supporting east coast energy markets through its agile and low-cost development approach. State Gas Limited controls contiguous gas projects with a total area of nearly 1,600km² and is fostering operational synergies through joint ventures with established industry players in adjacent permits. In addition, their innovative virtual pipeline solution is set to expedite the commercialization of gas assets by transporting compressed gas by truck to existing infrastructure or directly to end users. Technical details from the project highlight promising exploration outcomes. At the Rolleston West Project, recent drilling has intersected approximately eight metres of net coal across laterally continuous seams, with gas content measured between 5 and 6 m³ per tonne dry ash free. The methane quality is impressive, ranging from 93.8% to 96%, and production tests have confirmed sustainable commercial flow rates with excellent rock permeability. These factors support plans for additional drilling to further delineate gas resources and reserves. A further positive development is the company’s pioneering high-density natural gas (HDNG) production facility, which when combined with virtual pipeline trailer technology, is capable of delivering up to 1.7 terajoules per day of pipeline quality gas. This technology not only reduces environmental impact by capturing and processing testing gas that would otherwise be released, but also provides a flexible and modular solution to meet the needs of customers lacking traditional pipeline access. The news offers a mix of bullish and bearish elements for market observers. On the bullish side, the resumption of access at Rolleston West, coupled with the technical successes and innovative processing technologies, underpins the company’s growth prospects and operational momentum. The swift action to resume field activities and the promising drill results could be seen as catalysts for future profitability and increased investor confidence. Conversely, the continuation of the legal dispute with the landowner poses a potential risk, as ongoing courtroom proceedings could impact operational certainty. Additionally, the challenges inherent in early-stage production and further exploration in the region require careful management and execution.

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