State Gas Limited (ASX: GAS), a Queensland-based gas exploration and development company with prospective gas exploration assets located in the southern Bowen Basin, today announced the completion of an Australian Taxation Office (ATO) review into its Research and Development (R&D) concessional funding claim. The company, focused on supporting east coast energy markets through the efficient identification and development of new high-quality gas assets, confirmed that the ATO will release A$4.1 million in R&D tax concession funding.
The R&D funding claim, originally submitted for the 30 June 2024 period, relates to expenditure incurred by State Gas in the design and development of its High Density Natural Gas (HDNG) pilot plant. This pilot plant forms part of an eligible R&D project that the company has been undertaking since 2022. The ATO’s comprehensive review, which spanned over twelve months, meticulously examined the claim, confirming the eligibility of the costs claimed by the company. Furthermore, the review validated the robustness of State Gas’s governance and financial processes associated with managing its obligations under the R&D scheme.
State Gas has been formally advised that the A$4.1 million in R&D claim proceeds is scheduled for release to the company before the end of July 2026. These funds will be primarily utilised to repay all working capital loans that State Gas established to support its ongoing operations during the ATO’s review period. Any residual funds will be allocated to bolster the company’s cash reserves. Managing Director, Mr. Doug McAlpine, commented on the announcement, stating, “State Gas has devoted significant time and resources over the last year to supporting the ATO with its review process. The Company is pleased that the review is now complete and the R&D concession funds will reduce debt and provide additional working capital.”
