Xstate Resources Limited (ASX:XST), an ASX-listed company focused on the oil and gas sector, primarily its Diona project in Queensland, Australia, has announced the spudding of the Diona-1 well. Xstate holds a 51% working interest in the Diona Block of ATP 2077 in the Surat-Bowen Basin and is the operator. The company additionally holds exploration assets in the Sacramento Basin, California.
According to the announcement, the Ventia 101 rig is fully operational, and drilling commenced on September 27, 2025. The well has reached a depth of 549 metres, and the 9 & 5/8” casing is being run and cemented. After casing is complete, drilling will continue using an 8 &1/2” hole to the Showgrounds formation, the primary target, expected to be encountered at approximately 2,300 metres.
The drilling process is expected to take 7-8 days to get through the Showgrounds. Wireline logs will then assess the prospectivity of the formation. If the logs demonstrate positive prospectivity, the well will be cased. Following this, drilling will continue through the lower Tinowon and Wallabella formations to a total depth of 2,600 metres. The Diona-1 well is targeting the Showgrounds, Tinowon, and Wallabella formations at depths between 2,300m and 2,600m.
Xstate Resources Managing Director commented on the professional operation of the rig mobilisation and setup, expressing anticipation for the drilling results. The Diona project, strategically located near existing gas infrastructure, offers a potential rapid path to market if the well is successful, given the proximity to the Waggamba pipeline.
