• Exploration has commenced at Rolleston West Project located within ATP 2062
• Two new vertical wells will be drilled in an area with proven gas content and good permeability
• Gas from new wells will be captured and commercialised through State Gas' HDNG plant

State Gas Limited (ASX: GAS) has commenced its two-well exploration program for the Rolleston West Project located within ATP 2062. The two new vertical wells will be drilled in an area close to Rougemont 2/3 that has proven gas content and good permeability. State Gas' high density natural gas (HDNG) plant will be utilised to immediately capture and commercialise the production testing gas from these new wells, reducing the Company's fugitive emission profile while simultaneously enhancing its revenue generating capacity. Successful drilling and production testing results are expected to enable State Gas to seek accreditation for a maiden 2P reserve of 30-50PJs for the Rolleston West Project. This is a critical next step in demonstrating the commercial viability of the gas project and supporting an application for a petroleum lease over a substantial portion of ATP 2062. The two-well exploration program is fully funded through a $5.5 million exploration grant provided by the Queensland Government's Frontier Gas Exploration Program. The grant funding is provided progressively as milestones are achieved under the exploration program, with State Gas strategically matching the timing of its supplier payments to ensure full funding for the program.

State Gas is seeking to expand the Rolleston West Project and move to early-stage production. The Company is currently evaluating a further step-out drilling campaign to confirm the continuity and permeability of the coal down dip of Rougemont 1 and 2 and establish initial gas resource and reserve estimates for the project.