Rougemont-3 Target Depth Reached with Strong Gas Shows
Rougemont-3 Target Depth Reached with Strong Gas Shows

Brisbane, Sep 21, 2022 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) (STGSF:OTCMKTS) is pleased to announce that its Rougemont-3 horizontal well has reached target vertical depth and has confirmed good net coal in line with expectations.

As indicated in its announcements on 12 and 16 September 2022, State Gas is currently drilling the Rougemont-3 horizontal well to confirm the potential of the Rougemont area within its Rolleston-West Project (ATP 2062). The well will be drill laterally through the coal seams of the Bandanna Formation to meet the vertical Rougemont-2 well. Once completed, the wells will be placed on production as a combined vertical - horizontal pair.

After 3 days, the well penetrated the top of the Bandanna Formation, and it has now drilled to its target vertical depth, below the coal seams of interest. As expected, the well intersected approximately 9 m net coal, with two primary seams of 2.0 m and 3.0 m respectively.

The top of these two primary seams was intersected at 226 mTVD, with the lower some 29 mTVD lower, placing both seams at optimum depth for coal seam gas production.

Strong gas shows associated with the coals were observed during drilling, a promising sign for future productivity.

Notably, the coal seams in the formation clearly correlate (on a one for one basis) with the coals in both the Rougemont-1 and Rougemont-2 wells drilled by the Company in 2021 and with coal exploration wells some 10 km to the west. This correlation is evidence of a very high level of continuity in the coals extending across the area. This is encouraging, suggesting promising results from this well may be reproducible across the field.

Preparations are now underway to commence drilling the lateral through the primary coal seam in the well.

About State Gas Limited

State Gas Limited ASX:GASState Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.

Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).

State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.

The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.

State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.




Lucy Snelling
Head, Corporate and Commercial

Richard Cottee
Executive Chairman

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State Gas Limited

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