State Gas to Complete Two New Wells and Start Flow Testing by June End
State Gas Limited has settled a land access dispute at its Rolleston West Project, enabling the company to resume drilling and flow testing activities. This development paves the way for advancing coal seam gas production using innovative technologies.
- Access dispute with landowner resolved, site activities resumed
- Mobilisation underway for two new exploration wells
- Flow testing scheduled to commence by end of June
- Focus on coal seam gas production with virtual pipeline and HDNG technology
- Ongoing Land Court proceedings to address underlying dispute
Access Restored at Rolleston West
State Gas Limited (ASX – GAS) has announced a significant operational milestone with the restoration of site access at its Rolleston West Project in Queensland. Following a recent dispute with the landowner, the company and the landowner reached an agreement on 4 June 2025, allowing State Gas to immediately recommence activities on the property. This resolution removes a key obstacle that had temporarily stalled exploration efforts.
Advancing Exploration and Testing
With access reinstated, State Gas is mobilising field teams to complete drilling of two new exploration wells. The company aims to initiate flow testing by the end of June, a critical step in evaluating the commercial viability of coal seam gas (CSG) resources in the area. These activities are part of a broader strategy to expand the Rolleston West Project, which holds promising coal seams with high methane content and established permeability.
Innovative Technology Driving Development
State Gas is leveraging its proprietary virtual pipeline (VP) and high-density natural gas (HDNG) production facility technologies to commercialise gas resources efficiently. The VP system enables compressed gas transport by truck to existing pipeline infrastructure or end users, circumventing the need for costly pipeline construction. Meanwhile, the HDNG facility, a first in Australia, offers environmental benefits by capturing gas that would otherwise be vented and provides flexible supply options for industries transitioning away from diesel.
Legal Proceedings Continue
Despite the immediate resumption of site activities, the underlying dispute with the landowner remains subject to ongoing Land Court proceedings. While the agreement allows operational progress, the legal process introduces an element of uncertainty that investors will be watching closely. The outcome could influence future access and development timelines.
Strategic Positioning in Queensland’s Gas Market
The Rolleston West Project, along with adjacent assets like Reid’s Dome and joint ventures with Santos, positions State Gas as a notable player in Queensland’s southern Bowen Basin gas sector. The company’s focus on modular, low-cost development and innovative transport solutions aligns with growing demand for flexible, pipeline-quality gas supplies in eastern Australia’s energy markets.
Bottom Line?
With access restored and drilling imminent, State Gas is poised to unlock value at Rolleston West; but legal uncertainties linger.
Questions in the middle?
- What impact will ongoing Land Court proceedings have on long-term project access?
- How will flow testing results influence resource estimates and production timelines?
- To what extent can the virtual pipeline and HDNG technologies accelerate commercialisation?
