• Rougemont 6 well reached total target depth of 572 metres
• 8.1 metres of net coal intersected, with elevated gas shows
• Results confirm continuity of gas-bearing coal seams, reinforcing a large and permeable gas production zone

State Gas Limited (ASX: GAS) has announced successful drilling, wireline logging and casing of the Rougemont 6 vertical well at its Rolleston West Project (ATP 2062) in the Southern Bowen Basin in Queensland. Rougemont 6 is 1.5 kilometres north-east of the existing Rougemont 2/3 dual lateral well system. The well intersected the Bandanna coal measures at 403.8 metres, with 8.1 metres of net coal close to the expected range. Elevated gas shows during drilling further validate the commercial gas potential of the formation. The drilling results will be incorporated into the geological model for ATP 2062, with the data demonstrating strong correlation between with previously drilled wells. State Gas Managing Director, Doug McAlpine, commented that the results suggest strong consistency across the extensive Bandanna coal measures at Rolleston West, and the Company remains optimistic about the prospects of developing a substantial gas project at Rolleston-West. Drilling results from Rougemont 5 and 6, including wireline logs and production testing, are expected to support accreditation of a maiden 2P reserve of 30-50 PJ for the Rolleston West Project. Successful outcomes from the program will enable the Company to submit a petroleum lease application over a substantial portion of ATP 2062 and advance discussions with potential end users and pipeline infrastructure providers.

State Gas remains optimistic about the prospects of developing a substantial gas project at Rolleston-West, with the drilling results expected to support accreditation of a maiden 2P reserve of 30-50 PJ for the Rolleston West Project. Successful outcomes from the program will enable the Company to submit a petroleum lease application and advance discussions with potential end users and pipeline infrastructure providers.