Ann: State Gas spuds Rougemont-3 horizontal well, page-2

This is very good news for all GAS and TEG holders.
If this horizontal drill is successful as planned and there is high probability of success as they doing a replica of the drilling success at mahalo and Acadia.
GAS have confirmed that the quality of gas is pipeline quality direct and that flaring will be converted to sales instead.
"Under this project the first gas should be delivered to the pipeline by February next year"
So in Feb of next year GAS could be a producer from Rougemont and Conventional out of PL-231 as well.

If this drill is successful then surely GAS SP will be need to be rerated as it goes into production and supply mode to spot pricing and/or a fixed sales gas supply agreement.
If GAS SP gets rerated then surely the implications for TEG will be of great benefit being the largest holder of GAS at about 24%.
All of this is gas price dependent of course but its hard to see with winter approaching in Europe that there will be any cheap gas around.
Surely lack of East Coast supply will keep it high as well.
Drilling success here should see significant value added to both GAS and TEG SP hopefully.
Not a word from TEG Board but at least this a development that could be of major impact to both CO's.
HELLO MARKET anybody there?
GO GAS
GO TEG

State Gas Limited (ASX:GAS) (State Gas or the Company) advises that it spudded its new Rougemont-3 horizontal well overnight.

Silver City Drilling Rig 20 is currently installing surface casing, with the well at 63m depth. The rig will drill two laterals into the Bandanna coal seams starting with the first lateral at approximately 290m true vertical depth.
This lateral will be drilled horizontally for approximately 1,300m, intersecting with the Rougemont-2 vertical well at approximately 1,200m.

Following completion of the first lateral a second will be drilled approximately 30m below, again to intersect the Rougemont-2 vertical well, creating a total in-seam length of approximately 2 km.