- Brisbane-based gas developer State Gas has won its court case against Dome Petroleum Resources, completing its acquisition of a 20 per cent interest stake in the Reid’s Dome Project
- Both State Gas and Dome Petroleum were originally part of a Joint Agreement venture, founded in February of 2017
- Documentation outlining the joint agreement fixed the acquisition price for 20 per cent interest in the project at A$233 333
State Gas has won its court case against Dome Petroleum Resources, completing its acquisition of a 20 per cent interest stake in the Reid’s Dome Project.
State Gas won their case in from of Queensland’s supreme court this morning and will now pay A$233 333 to acquire Dome’s remaining 20 per cent stake. Dome Petroleum has also been ordered to pay the costs of State Gas on an indemnity basis.
Both State Gas and Dome Petroleum were originally part of a Joint Agreement venture, founded on February 2017. Prior to its acquisition of the remaining 20 per cent stake today, State Gas had obtained a further 20 per cent interest from Dome in November 2018. State Gas attempted to acquire the last 20 per cent stake in February this year.
The joint agreement states one participant may acquire another party’s interest in the project if that participant’s stake falls below 25 per cent. When Dome Petroleum’s interest fell to 20 per cent, State Gas commenced proceedings to obtain their remaining stake in the project, triggering a compulsory acquisition. This would increase State’s participating interest level to 100 per cent, giving them full control of the project.
However, Dome failed to complete the transaction and transfer the final 20 per cent in interest earlier this year, moving State Gas to bring the joint venture before the Queensland Supreme Court.
Documentation outlining the joint agreement has fixed the acquisition price for 20 per cent stake in the project at A$233,333.
State Gas’ win follows a recent operational announcement which summarised significant progress towards a gas delivery strategy at the prospect. With plans to implement the strategy by 2021, State Gas intends to commence Coal Seam Gas drilling campaign later this month.
State Gas’ stocks were down 5.6 per cent today, currently selling at A$0.59 each. The company’s market cap is valued at A$89.64 million.