Xstate Resources Limited (ASX:XST), an ASX listed company focused on the oil and gas sector, particularly its Diona project in Queensland, has signed a drilling contract with Easternwell Group Operations Pty Ltd (a subsidiary of Ventia Services Group Limited) to drill the Diona-1 well. The well is located on the Diona Block of ATP 2077 in the Surat-Bowen Basin, Queensland. Xstate holds a 51% interest in ATP 2077, while Elixir Energy (EXR) holds the remaining 49%.
Xstate has requested that Ventia mobilise the drill rig on 21 September 2025, with drilling anticipated to commence around 26 September 2025. According to Xstate Resources Managing Director Andrew Bald, work has already commenced on the ground in preparation for drilling. Early drilling results are expected in the first weeks of October, assuming the project proceeds as planned.
The Diona project is strategically located between the Silvers Springs Gas processing facility and the Waggamba gas field. The Diona-1 well targets three proven hydrocarbon reservoirs: the Showgrounds, Tinowon, and Wallabella. The well is expected to reach a total planned depth of 2,600m in under 15 days, targeting the top of the Showgrounds at 2,300m.
Should the drilling be successful, Xstate anticipates a rapid path to market due to the Waggamba pipeline’s proximity (less than 100m) to the well pad. The announcement was authorised for release by the Board of Directors.
