DRILLING

No flow but Red Rock-1 still positive

Sunshine Gas has reported encouraging signs from its 100% owned Red Rock-1 well with a gas flare at surface, although the gas is considered to be non-commercial at this location.

No flow but Red Rock-1 still positive

However, water and gas flows experienced while running wire-line logs have left a positive impression with the company regarding the porosity and permeability of the reservoir.

Additional work will now need to be carried out to determine the next drilling location in the ATP 684P permit.

Sunshine is now preparing for the next well in the current drilling program, Luton-2 (coal bed methane) which is expected to spud in late August.

Red Rock-1 is the second well of a six well program in the Northern Bowen Basin (Denison Trough) for Sunshine Gas, targetting shallow conventional gas.

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