State Gas Limited provides this update on the construction of its compressed natural gas ("CNG") facility which will support the processing and initial sale of production testing gas from the Company's Rolleston West Project. In response to several days of continuous rain on site, the Company has instructed construction crews to demobilise to limit the impact of standby costs. Civil construction and mechanical crews will remobilise to site when ground conditions are sufficient to allow productive work to resume. Only a few days of additional
field work are required to complete the gathering system and construction pad. Once the construction pad is completed, mechanical and commissioning work on the CNG Facility can be undertaken even if wet weather persists. The Company will provide a further update when the timetable for remobilising to site is clear and the impact to the overall project schedule has been determined.