State Gas Limited (ASX: GAS) is happy to advise, that as per their expectation the Primero West-1 well at the Reid’s Dome Gas Project (PL 231) has come across gas overnight at 134 meters within the Cattle Creek Formation.
The company took efforts for seismic reprocessing during 2018. The purpose for which the Primero West-1 well was located and designed to perform a test on the formation of the Cattle Creek within PL 231. For this purpose, 100% funding was done by State Gas Limited based on the requirements mentioned in the Joint Venture Operating Agreement.
Towards 650 meters in the southwest direction of AOE-1, Primero West-1 is situated. At this location, the testing is in advancing towards the southwestern extent of the Cattle Creek gas sand that was discovered in AOE-1 in the year 1955. It was directed earlier that after the completion of drilling, logging and flow-testing process of Primero West-1, the well will be blocked and deserted keeping in mind the need of additional drilling requirements as well as focused seismic program for the optimal utilization of the locations of the production well in case of any full-field development of the Cattle Creek Formation within PL 231.
On completion of the activities at Primero West-1, Silver City Drilling Rig-25 will be shifted to the Nyanda-4 site. This site is approximately 13.5 kms in the region towards the south of PL 231. At present, Nyanda-4 well which is of 1000 meters deep is planned and its funding will be based on the terms and conditions of the Joint Venture Operating Agreement. Also, as per the agreement State Gas is supposed to pay 60% of the cost as it is only 60% owner of Reid’s Dome Gas Project (PL-231).
Since the inception, the performance of the company is -11.43%. The 1-year performance of the company is -26.19%. For the past 6 months, the performance of the company is 55%. For the year ended 30 June 2016, the company made a net loss of $702,030. The balance sheet of the company appears to be strong. The net asset of the company is $6,386,850. The current asset of the company is $4,608,719 and the total current liabilities of the company is $402,215. This indicates that the company has the potential to meet its existing working capital as well as short-term obligations. From the operating activities, the net cash outflow was $443,287. The net cash outflow from investing activities was $524,360 and the net cash inflow from financing activities was $5,004,837. By the end of the year, the cash and cash equivalent were $4,537,398.
By the end of the day, the market price of the share was A$0.300 with the market capitalization of $41.79 million.
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