Ann: End of Year Update, page-13

Rougemont Production Testing – Continued Strong Gas Production
HIGHLIGHTS:
• Rougemont production test well now producing in excess of 250,000 cubic feet of gas per
day during testing, with the daily gas production rate continuing to accelerate
• Bandanna coal seams still submerged 70 metres below the current water level
State Gas Limited (ASX: GAS) (“State Gas” or “the Company”) 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.”