State Gas (ASX:GAS) completed drilling, wireline logging, and casing of the Rougemont 6 vertical well at its Rolleston West project in Queensland, confirming commercial potential with elevated presence of gas, according to a Monday filing with the Australian bourse.

The well intersected the Bandanna coal measures at 403.8 meters, with 8.1 meters of net coal close to the expected range, the filing said.

The company will incorporate Rougemont 6 wireline log data into its geological model for the project, according to the filing.

Shares fell 7% in recent trade Tuesday and earlier hit an all-time low.