State Gas Limited advised further encouraging results from continued production testing of the combined Rougemont-2 vertical well and Rougemont-3 lateral wells ("Rougemont"). Despite the Bandanna coal seams still being covered by 120 metres of water, daily gas production at Rougemont 2/3 is now exceeding 100,000 cubic feet of gas per day. The rapid increase in daily gas production, during the past week since the Company's last announcement, continues to indicate the excellent permeability of Rougemont's coals and the possibility of extremely high gas production levels from the pilot well.