Xstate Resources Limited (ASX:XST), an ASX-listed company focused on the oil and gas sector with its Diona project in Queensland, Australia, has provided an operational update on the drilling of its Diona-1 well. The company owns 51% of ATP 2077, with Elixir Energy Limited retaining 100% beneficial ownership in Blocks A and B. Xstate spudded its first well in the Diona block, Diona-1, on September 27, 2025.
The company announced that the transfer of 51% of ATP 2077 to Xstate was registered on September 29, 2025. As of this morning, drilling had reached approximately 1130 metres and was progressing nicely, with a net Rate of Penetration of about 60m per hour. The Ventia 101 rig is performing extremely well.
Xstate anticipates reaching the top of the Showgrounds formation, its first target at 2,300m, late on Friday, October 3, 2025, or early on Saturday. This is in line with the company’s forecast timeline. The Diona-1 well is targeting the Showgrounds, Tinowon, and Wallabella formations at depths between 2,300m and 2,600m.
Following the completion of wireline and mudlogging for the Showgrounds formation, a decision will be made regarding casing the Showgrounds and drilling through to the Tinowon and Wallabella formations. The Diona project is a shallow, conventional gas prospect ideally placed adjacent to the Waggamba to Silver Springs gas pipeline.
