State Gas Limited advised that the production test of the Rougemont-2 and Rougemont-3 well pair commenced 22 November 2022. As previously announced 1 State Gas recently completed drilling the Rougemont-3 horizontal well. The well consists of two laterals drilled through gas bearing coal seams to intersect with the Rougemont-2 vertical well (drilled in 2021).

The two laterals, both in excess of 1000m length, provide direct access to ~ 2400m of Bandanna coals, a formation under commercial production in nearby Arcadia Valley. Water levels in the well pair will be drawn down slowly to optimise production. Initial gas flows are not expected to commence for several months.

The Rougemont-2/3 production test is being undertaken to confirm the gas production potential of the Rougemont area within State Gas' 100%-owned Rolleston-West Project (ATP 2062) and to provide gas for a future pipeline to connect the project area with the east coast gas pipeline network 2.