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Cottee's State Gas snaps up huge joint venture with Santos

Business

Shares in Richard Cottee’s State Gas jumped 12 per cent today after it and Santos landed a highly prospective exploration area in central Queensland stretching over 1000 sq km.

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A joint venture between the two companies was given preferred tenderer status for two strategic areas that adjoin existing projects held by both companies and would provide economies of scale and efficiencies.

Neither is constrained by domestic gas reservations allowing them to be sold into the export pool.

State Gas would hold 35 per cent and Santos 65 per cent of the new permits.

State Gas executive chair Richard Cottee said the company wanted to bring the gas to market as quickly as possible and said the timing was fortuitous.

“The high gas prices triggered by the war in Ukraine appear to be with us for the foreseeable future,” Cottee said.

“The conflict has highlighted Europe’s ongoing dependence on gas in the transition to a lower carbon future.

“These two new blocks, within our existing area of expertise and operations, are a significant addition to State Gas’s portfolio. They will provide increased synergies in operations, synchronistic development and gas marketing optionality.”

 

 

 

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