State Gas Limited (STGSF) Advances Rolleston West

State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is pleased to announce the successful completion of the Rougemont-5 and Rougemont-6 vertical wells at its Rolleston West Project (ATP 2062) in Queensland's Southern Bowen Basin. These two new vertical wells build on the Company's earlier success with the Rougemont 2/3 dual lateral well, which demonstrated commercial gas flows of 474,000 standard cubic feet per day during an extended production test conducted between May 2024 to November 2024.

HIGHLIGHTS:

- Rougemont-5 and Rougemont-6 successfully intersected ~8 metres of net coal within the Bandanna Formation, beginning at depths of approximately 420 metres, consistent with geological predictions

- Both wells have been completed with production tubing and downhole pumps installed, enabling immediate commencement of dewatering and production testing

- Drilling results will be incorporated into the Company's resource model to support initial 2P reserve accreditation

- Drilling was fully funded under the $5.5M Queensland Government Frontier Gas Exploration Program

State Gas Managing Director, Doug McAlpine, commented: "With more than 2.3 kilometres of exploration drilling now completed across three well systems, State Gas is in a strong position to seek third party accreditation of an initial reserves estimate for the Rolleston West Project. These results continue to progress us toward the development of a significant new gas supply source in the eastern area of ATP 2062. As the need for reliable, lower-emission energy continues to rise, Rolleston West is shaping up as a project of real scale with a clear pathway to near-term development."

Rougemont-5 and Rougemont-6 both each intersected 7.8 metres of net coal within the key Bandanna Formation, between depths of 419 and 520 metres. Elevated gas shows were recorded during drilling, reinforcing the commercial gas potential of the formation across the project area.

Preliminary results confirm lateral continuity of the target coal seams over a broad area, extending from Rougemont-6 in the north to Rougemont-1 in the south, and Rougemont-2/3 to the west (Figure 1*).

Rougemont-5 and Rougemont-6 were drilled to expand the productive footprint initially defined by the Rougemont-2/3 dual lateral well. These locations were selected with well spacings to maximise the potential addition of 2P reserves and establish a broader minimum productive area for the Rolleston West Project.

Drilling results strongly support the Company's geological and commercial assessment that a significant, pipeline-quality coal seam gas (CSG) resource exists in the eastern portion of ATP 2062.

These results strengthen the case for a future large-scale natural gas development in the Denison Trough region.

State Gas is well positioned to capture gas from production testing at Rougemont-5 and Rougemont-6 using its High-Density Natural Gas (HDNG) technology and virtual pipeline transport solution. This integrated approach provides a pathway to deliver gas directly to users who lack traditional pipeline access.

Funding under the Queensland Government's Frontier Gas Exploration Grant Program has enabled State Gas to accelerate drilling of these two new exploration/appraisal wells and to further delineate the commercial potential of the Rolleston West Project.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/1W8T7J1Y

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

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