State Gas Limited announced that The Rougemont-3 horizontal well is currently being drilled in Central Queensland to confirm the gas for production in the Rougemont area within State Gas' 100%-owned Rolleston-West Project (ATP 2062) 1, and to provide gas for a future pipeline planned for 2024. The well is being drilled laterally through the coals of the Bandanna Formation (which are in commercial production at the Arcadia Valley to the south-east) to meet-up with the vertical Rougemont-2 well. Excellent gas shows have been observed throughout the drilling of the first Rougemont-3 lateral, with gas peaks of 29.5% and an overall average throughout the lateral of 24%, of which 99% was methane.