• Successful drilling of new Rougemont 5 and 6 wells, with strong coal and gas consistency
• Completion of wells expected by end of May 2025 for production testing
• Data to support establishment of maiden 2P reserve for Rolleston West Project

State GAS Ltd (ASX: GAS) has released its quarterly activities and cash flow report for the period ending 31 March 2025. The key highlights include the successful drilling of two new vertical wells, Rougemont 5 and 6, at the Rolleston West Project in Queensland's Southern Bowen Basin. The drilling results have demonstrated strong coal and gas consistency across the project area, with approximately 8 metres of net coal intersected in the Bandanna Formation. Elevated gas shows during drilling further support the company's hypothesis of commercial gas potential in the Rolleston West Project area. The completion of the two new wells is expected by the end of May 2025, to be immediately followed by well production testing. The data provided from these activities will support the establishment of a maiden 2P reserve for the Rolleston West Project. The company also made progress in negotiating a commercial settlement with the landowner at ATP 2062 in respect of the access dispute which arose in late 2024, and advanced its cost recovery process under the company's insurance policies. The company's liquidity position at the end of the quarter was significantly improved, with a substantial inflow of R&D grant funding and Frontier Gas Exploration Program funding for the two new wells. The company has an executable capital management plan to complete the two-well exploration program and support its ongoing operations while preparing to recommence its high-density natural gas (HDNG) plant later this calendar year.

The company expects to have sufficient capital to support its current plans over the short term, with a focus on completing the two-well exploration program and supporting ongoing operations. The company can control the timing of further discretionary expenditure, such as exploration activity beyond that funded by government grants, to coincide with the availability of capital.

The company remains optimistic that its HDNG supply capability creates substantial opportunities for natural gas to allow miners to diversify their fuel sourcing strategy while simultaneously operating with lower carbon emissions. The company is well-positioned to support the growing energy demand on the East Coast of Australia, with a focus on the Rolleston West Project and the application of its unique HDNG capability.