State Gas Limited (GAS.AX) Advances Rolleston West

State Gas advances Rolleston West with new wells entering production testing phase

Brisbane, July 2, 2025 AEST (ABN Newswire) - State Gas Limited (ASX:GAS) (STGSF:OTCMKTS) 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:
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About State Gas Limited

State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets. 

It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure. 

State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user. 

State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development. 

State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.

 

 

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