State Gas Limited announced the initial results of the second well in its Phase 2 drilling campaign, Nyanda-8, at its 100%-owned Reid's Dome Gas Project (PL 231) in the Bowen Basin in Central Queensland. Nyanda-8 is approximately 2.2 km south-west of the Nyanda-4 well, and together with Nyanda-7 (approximately 2.6km north of Nyanda-4), was drilled as a coal seam gas (CSG) well as part of the Company's program to appraise the Nyanda Focus Area within PL231 for early development. Nyanda-8 reached the targeted Total Depth of 1200m on 3 January 2021, following spud on 29 December 2020. Wireline logs indicate the well has intersected 19.7m net coal with open fractures apparent on the image log, exhibiting good potential for CSG production. The results of both Nyanda-7 and Nyanda-8 are within the expected range based on data for Nyanda-4, where testing in late 2020 recorded gas production at rates approaching 500,000 cubic feet per day2. All three wells have intersected good quality coals, with seams of similar thicknesses and depths, confirming the widespread presence of gas- bearing coal seams and significant net coal within the Nyanda Focus Area. The next step in the appraisal of the Nyanda Area is to undertake production testing of the two new Nyanda wells and recommence the production test at Nyanda-4. To this end, the Completion/Workover Rig has commenced operations at Nyanda-4 to enable the production test to recommence, following which it will install pumps in both Nyanda-7 and Nyanda-8. All three wells are anticipated to be dewatering by the end of January to enable gas production. The drilling rig is currently completing installation of casing at Nyanda-8, following which the crew will demobilise while the current La Nina weather event is at its peak. When an appropriate weather window opens, the crew will return and drill the proposed Aldinga-2 well in the northern area of PL 231, and Serocold-3 in the central area.