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State Gas (ASX:GAS) has regained access to its Rolleston West project from which it was recently locked out of by the landowner.
While the exact nature of the underlying dispute isn’t necessarily clear, the company noted on Tuesday the legal action it took against the landowner has now been dropped, and, a settlement process is underway.
In between the lines: Lawfare has worked.
On November 4, the company’s shares dropped 17% when it first notified the market it couldn’t access its flagship project – one which the Queensland government had thrown $5 million at earlier in the year.
While what happened isn’t clear, there are clues. Namely a 2021 seismic reprocessing report, part of the QLD gov’t geological library, which noted farming land occurs within the permit boundaries.
(Read: Probably a dispute with farmers.)
“Late on 18 November 2024, State Gas and the landowner entered into a settlement arrangement that allows State Gas to immediately recommence the company’s gas production activities on the landowner’s property,” State Gas wrote on Tuesday.
“The arrangement also allows State Gas to continue its planned two-well exploration program subject to continued implementation of access protocols for the well sites as prescribed in the Conduct and Compensation Agreement (“CCA”).
“As part of the settlement arrangement, State Gas has agreed to discontinue legal action against the landowner.”
That is, of course, contingent on access being meaningfully restored.
GAS last traded at 3.4cps.
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