State Gas (ASX:GAS) breaks through at Rougemont-2

State Gas Limited (ASX:GAS) has reached vertical depth through the Bandanna Formation at the Rougemont-2 well in Central Queensland.

Once completed, the wells will be placed on production as a combined vertical – horizontal pair.

After 3 days, the well penetrated the top of the Bandanna Formation, and it has now drilled to its target vertical depth, below the coal seams of interest.

The Company said, aexpected, the well intersected approximately 9 meters net coal, with two primary seams of 2.0 m and 3.0 m respectively.

The top of these two primary seams was intersected at 226 mTVD, with the lower some 29 mTVD lower, placing both seams at optimum depth for coal seam gas production.

It said notably, strong gas shows associated with the coals were observed during drilling, a promising sign for future productivity.

Also, the coal seams in the formation clearly correlate (on a one for one basis) with the coals in both the Rougemont-1 and Rougemont-2 wells drilled by the Company in 2021 and with coal exploration wells some 10 km to the west.

The Comapany points to this correlation as evidence of a very high level of continuity in the coals extending across the area.

“This is encouraging, suggesting promising results,” Executive Chairman Richard Cottee said.

“From this well may be reproducible across the field.

“Preparations are now underway to commence drilling the lateral through the primary coal seam in the well.”