A little over a year ago WA oil producer Triangle Energy offloaded a gas project onto the ASX.

Today, that little gas project is worth $98 million more than its parent.

Triangle (ASX:TEG) spun out a single project in the Bowen Basin in Queensland into a company called State Gas (ASX:GAS), retaining 35.47 per cent.

That shareholding is proving to be profitable.

State Gas had a blockbuster IPO in October 2017 and a year later struck coal seam gas and conventional gas in its first Reid’s Dome well, a location in the gas-rich Bowen Basin in Queensland.

Despite a squabble with a partner — State said it was taking over the whole project while the owner of the remaining 20 per cent said it categorically was not, thank you — this week it appointed an advisor to handle “inquiries from potentially interested parties”, the kind of comment that hints of takeover offers.

Today Triangle is worth about $31m on the ASX, even with oil production of 1000 barrels bringing in $32,420 pure profit every day.

Its minority stake in State Gas, however, is worth $46m.

State Gas shares hit $1 for the first time on Wednesday, valuing the company at $129m as investors chase the blue-sky dream of potential gas, a potential takeover, and the ever-present knowledge that gas producers will almost be able to name their price on the East Coast in the coming years.

State Gas shares since listing in October 2017. Chart: CommSec