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The results of the field activities have been very encouraging. Drilling in the northern and central areas of the permit has confirmed the presence of the Reid’s Dome coal measures throughout the spine of PL 231 with gas content on a par with Nyanda-4.

In order to investigate the potential of coal seams across the permit State Gas drilled the Aldinga East-1A well (approximately 12km to the north of Nyanda-4), and the Serocold-1 well (approximately half way between). Both Aldinga East-1A and Serocold-1 confirmed the presence of coal measures, similar to those at Nyanda-4, in the northern and central domains of the permit. Both wells contain a significant number of seams showing permeability.

The Serocold-1 production test commenced in January 2020 and quickly (within the first week) provided indications of gas production commencing. From the early observations, the Company is confident that the Serocold-1 well will successfully produce CSG.

In a surprise development likely to benefit the commerciality of the field, the Aldinga East-1A well discovered a new conventional gas pool located in approximately 9m of gas sand in the Cattle Creek Formation. A gas sample taken from the well indicated it was pipeline quality gas. In addition to the conventional gas, the Aldinga East-1A well intersected 14.6 metres of net coal. The Company is confident this well will also successfully produce CSG.

The next phase of activities will confirm commerciality and inform development plans for the Project.

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