Latemore 2 Flows 2.5 MMcfd

Sunshine Gas reports that the Latemore 2 appraisal well in PL 5 Surat Basin Queensland, is currently at a depth of approximately 1,345m and has successfully conducted a drill stem test (DST 2) in the primary target (Rewan Formation). DST 2 recorded a gas flow rate of 2.5 million cubic feet per day (MMcfd) through a separator and a 1/2" choke.

The well will now be drilled to its anticipated total depth of 1,479 meters. Wireline logs will then be acquired.

Previously, DST 1 in the secondary objective Precipice Sandstone recorded a gas flow of 0.29 MMcfd on a 1/4" choke.

The well is being drilled by Santos Limited as Operator of PL 5 and is utilizing Mitchell Drilling Rig 151. It is anticipated that the well will take a total of 13 days to drill, evaluate and case.

Interstate Pipelines Pty Ltd a 100% Sunshine Gas Limited subsidiary holds 15% and Santos as Operator holds 85%.

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