State Gas Limited reported that production testing gas from the Rougemont 2/3 lateral well ("Rougemont") has exceeded 457,000 scf/day. The Company expects the top coals of the Bandanna coal measures to be uncovered by the end of March, based on its careful approach to draw-down - at a rate of three to four metres of water per day. It is reasonable to expect improved daily gas production once the coal seams are exposed.

In parallel, State Gas continues to evaluate the quickest method by which it can have reserves declared at Rougemont that are sufficient to underwrite the financing of an approximately 20 km pipeline to a connection on the Wallumbilla to Gladstone Pipelines, allowing Rougemont gas to be brought to market. CNG Project Update: Delivery of the compressor for the Reid's Dome CNG Project has been delayed. The compressor was successfully unloaded at the Port of Brisbane, however as a result of delays in loading the compressor at the point of origin (Port of Houston, Texas), Australian Quarantine and Inspection Services have shipped the compressor offshore for fumigation.

On 17 March 2023, the Queensland Government approved changes to the Company's pre-existing environmental authority for PL 231, that allows State Gas to move forward with construction and commissioning activities for the CNG Project. This is an encouraging demonstration of the Queensland Government's desire to see new gas production brought on-line quickly.