Xstate Resources has disposed of its 20% stake in the Austrian Anshof project, shedding liabilities and production to sharpen focus on its promising Diona project and upcoming ASX re-listing.
- Disposal of 20% working interest in Anshof project to Kathari Energia
- No cash payment; liabilities of EUR547,075 extinguished
- Production decreases by 14 barrels of oil per day
- Strategic shift to focus on Diona project in Queensland
- ASX re-listing process targeted for July 2025
Strategic Portfolio Simplification
Xstate Resources Limited (ASX, XST) has taken a decisive step to streamline its asset portfolio by disposing of its 20% working interest in the Anshof oil project in Austria. The transaction, completed through an assignment agreement with Kathari Energia GmbH, a subsidiary of ADX Energy Limited, effectively transfers Xstate’s production rights and associated obligations without any net cash exchange.
This move reduces Xstate’s daily oil production by approximately 14 barrels but importantly clears accrued liabilities amounting to EUR547,075. These liabilities, which included contributions toward a permanent production facility, had been a financial overhang for the company. By assigning these obligations to Kathari, Xstate not only strengthens its balance sheet but also removes ongoing operational costs tied to the Anshof project.
Focus Shifts to Diona and ASX Re-listing
With the Anshof exit behind it, Xstate is now fully concentrating on advancing its Diona project located in Queensland’s Surat Bowen Basin. Acquired earlier this year, Diona represents a fresh growth opportunity in a prolific Australian oil and gas region. Managing Director Andrew Bald emphasized that the disposal “simplifies our portfolio” and allows the team to dedicate 100% of their efforts to Diona’s development and the company’s re-listing on the ASX, tentatively scheduled for July 2025.
The re-listing process is progressing well, with the prospectus nearing completion and plans to lodge it with ASIC by mid-June. A shareholder meeting is expected in late July to finalize the re-compliance steps. This strategic pivot signals Xstate’s intent to reposition itself as a focused Australian oil and gas player, shedding peripheral assets to concentrate on higher-potential projects.
Background and Financial Implications
Xstate’s involvement in the Anshof project began in 2021 through a farmin agreement with ADX Energy’s Austrian subsidiary, earning a 20% interest by funding part of the well costs. However, the project’s modest production rates and escalating liabilities, including a disputed production facility budget, led to the decision to exit. The assignment agreement with Kathari extinguishes Xstate’s unpaid cash calls and transfers all commitments, effectively removing financial and operational risks associated with the Austrian asset.
While the disposal means a reduction in production volumes, the trade-off is a cleaner balance sheet and a sharper strategic focus. Investors will be watching closely how the company leverages this streamlined position to unlock value from the Diona project and navigate the re-listing process.
Bottom Line?
Xstate’s Austrian exit clears the path for a focused Australian growth story ahead of its ASX return.
Questions in the middle?
- What are the expected production and revenue timelines for the Diona project?
- How will the re-listing impact Xstate’s capital structure and investor base?
- Could further asset disposals or acquisitions be on the horizon post-re-listing?