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Highlights
- State Gas regains access to the Rolleston West project after resolving a dispute.
- Legal action against the landowner has been discontinued.
- Operations and exploration activities are set to resume under agreed protocols.
State Gas (ASX:GAS) has announced the resolution of its recent access issues at the Rolleston West project in Queensland. The company had been locked out of the site by the landowner, prompting legal action to regain entry. In a statement released on Tuesday, the ASX energy stock State Gas confirmed that the lawsuit has been dropped following a settlement arrangement with the landowner, allowing the company to resume operations immediately.
The exact nature of the dispute remains unclear, though historical reports suggest it may have stemmed from the overlap of agricultural land within the project’s permit boundaries. A seismic reprocessing report from 2021, part of the Queensland government’s geological library, highlighted that farming areas exist within the site.
The legal hurdles have impacted State Gas’s operations significantly. On November 4, the company’s share price fell by 17% after notifying the market of its inability to access the project. This development raised concerns about the future of the Rolleston West site, which had previously received $5 million in funding from the Queensland government earlier in the year.
In a statement, State Gas revealed that on November 18, 2024, it reached a settlement with the landowner, allowing gas production activities to recommence on the property. The agreement includes terms to continue exploration through a planned two-well program while adhering to access protocols outlined in a Conduct and Compensation Agreement (CCA).
The settlement also includes the discontinuation of legal proceedings initiated by the company against the landowner. However, the agreement stipulates that operations are contingent on sustained access to the site.
The Rolleston West project is a critical asset for State Gas, serving as a focal point for its exploration and production efforts in Queensland. The resolution of this dispute is expected to facilitate ongoing development, aligning with the company’s broader objectives in the region.
State Gas’s shares last traded at 3.4 cents per share, reflecting the company’s recent challenges and potential recovery following the settlement. As the situation stabilizes, all eyes remain on the progress of exploration and production at the Rolleston West site.
