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Xstate Resources Limited (ASX:XST)

ALERT: Price-sensitive ASX Announcement for XST
Current share price for XST : $0.014 -0.019 (-57.58%)+
Announcement
Release
18 May 2026 8:30AM
Price at Release
$0.033
Full Release
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Summary
Xstate Resources Limited, in collaboration with Elixir Energy Limited, announced the discovery of over-pressured hydrocarbons in the Diona-1 well located in the Surat-Bowen basin of South West Queensland. The joint venture, wherein Xstate owns a 51% stake, has observed consistent gas flaring at the well, indicating the presence of significant gas reserves. Current operations are focused on recovering completion fluids to reduce hydrostatic backpressure and improve sustained production rates. The JV is also seeking to certify contingent resources independently and is planning further operations to enable sustained production. This discovery provides significant insights into the geological potential of the region and supports Xstate's strategic focus on oil and gas exploration in Queensland.
Key Points
  • Diona-1 well confirms over-pressured hydrocarbons in Permian formations.
  • Consistent gas flare observed at Diona-1 well.
  • Flow testing ongoing to improve sustained production rates.
  • Xstate Resources owns 51% of Diona block in ATP 2077.
  • Joint Venture with Elixir Energy Limited for Diona project.
  • Strong transient gas response observed at Diona-1.
  • Hydrostatic head from fluid column constraining gas flow.
  • JV pursuing independently certified Contingent Resource.
  • Planning activities ongoing for sustained production.
  • Xstate's focus on oil and gas sector in Queensland.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.