State Gas Limited (STGSF) Continues Strong Rougemont Production Gas Testing

State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is pleased to advise further encouraging results from production testing of the Rougemont 2/3 vertical and lateral well combination ("Rougemont").

Notwithstanding, a further seventy metres of water yet to be drawn down until the first coal seam is exposed, daily gas production at Rougemont is now exceeding 250,000 cubic feet of gas per day.

Executive Chairman, Richard Cottee said "Since our previous announcement, we have continued to see acceleration in daily gas production and remain excited about the possibility of extremely high gas production levels from the production test well. The results are promising compared to other high performance CSG wells at a similar stage of dewatering. As we approach the point of commercial viability for the well, we are evaluating options to establish a substantial gas reserve in the area."

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Doug McAlpine
Chief Executive Officer
Phone: 0488 007 889
Email: doug@stategas.com

Richard Cottee
Executive Chairman
Phone: 0458 517 850
Email: richard@stategas.com

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