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State Gas shares rocketed today after the junior gas explorer told investors it was taking full ownership of the Reid’s Dome project in Queensland and it had better-than-expected results from a well it was planning to plug and abandon.

Just a week earlier, the company (ASX:GAS) revealed it was raising its stake from 60 per cent to 80 per cent.

The stock closed up over 80 per cent at 68.5c on Wednesday.

Director Greg Baynton told Stockhead State Gas’ decision to increase its stake in the project had nothing to do with the better-than-expected results from recent drilling of the Nyanda-4 coal seam gas and conventional gas well.

“Irrespective of the Nyanda-4 well, this was something that would be in the interests of all shareholders,” he said.

State Gas upped its stake from 80 per cent to 100 per cent after joint venture partner Dome Petroleum Resources PLC reduced its stake below the minimum interest stipulated under the joint venture agreement.

“An opportunity became available when the joint venture partner reduced its stake to 20 per cent, which is below the minimum interest,” Mr Baynton said.

Just before State Gas revealed it was increasing its stake in the Reid’s Dome project, the company told shareholders it had received “favourable” results from drilling and testing the Nyanda-4 well.

The drilling results indicated good gas shows from about 392m, and an overall increase in gas content with depth. Data suggested there were still gas shows at the total depth of 1200m.

The well was designed to be plugged and abandoned, but State Gas says it has now suspended the well for future re-entry and further testing.