Xstate Sells Austrian Asset, Prepares for Diona Drilling and ASX Re-Listing
Xstate Resources has divested its Austrian Anshof project to concentrate on its upcoming Diona drilling campaign in Queensland and a planned ASX re-listing backed by a $2-3 million capital raise.
- Disposal of 20% interest in Austria’s Anshof project
- Preparation underway for Diona-1 well drilling in Queensland
- ASX re-listing process initiated with $2-3 million capital raise
- Maintains stable oil and gas production in California assets
- Leadership changes with new Managing Director Andrew Bald
Portfolio Realignment and Strategic Focus
In a decisive move to sharpen its operational focus, Xstate Resources Limited (ASX – XST) has completed the sale of its 20% working interest in the Anshof project in Austria. This divestment, announced on 4 June 2025, transfers all obligations and equity in the project to Kathari Energia GmbH, a subsidiary of ADX Energy Limited. The transaction effectively clears the way for Xstate to concentrate its resources on its core growth opportunity in Australia.
The Anshof project, which was producing approximately 14 barrels of oil per day at the time of sale, was exchanged for a cash equivalent of around A$963,000, offsetting accrued cash calls related to the project’s production facility. This strategic exit signals Xstate’s intent to streamline its portfolio and prioritize higher-impact ventures.
Diona Project – The Next Frontier
Xstate’s attention now turns to the Diona project in Queensland’s Surat Bowen Basin, where it holds a 51% working interest following an April 2025 acquisition from Elixir Energy Limited. Preparations are well underway for the drilling of the Diona-1 well, anticipated to commence shortly after the company’s shares are re-listed on the ASX.
The re-listing process is a critical milestone for Xstate, requiring compliance with ASX Listing Rules Chapters 1 and 2. To support this, the company has launched a capital raising effort targeting between $2 million and $3 million, as detailed in its Re-Compliance Prospectus issued on 26 June 2025. This funding is expected to underpin the upcoming drilling program and associated operational activities.
Stable Production and Financial Position
While the company pivots towards its Australian project, it continues to maintain its oil and gas assets in California’s Sacramento Basin, holding working interests ranging from 10% to 33% across several leases. Production volumes saw a decline in gas output during the quarter, with net gas production dropping from 2,023 thousand cubic feet in March to 1,390 thousand cubic feet in June 2025.
Financially, Xstate ended the quarter with a cash balance of A$2.488 million, down by $788,000 from the previous period. Exploration expenditure was modest at $83,000, with no production expenditure recorded. Payments to related parties, including directors’ salaries and consulting fees, totaled $128,000.
Leadership and Corporate Governance
Corporate governance adjustments accompanied these operational developments. Andrew Bald was appointed Managing Director in April 2025, tasked with steering the company through the re-listing and drilling phases. Concurrently, Andrew Childs transitioned from an executive chairman role to a non-executive capacity, signaling a refreshed leadership structure aimed at supporting Xstate’s next growth chapter.
With a competent person overseeing technical disclosures and a clear strategic direction, Xstate appears poised to leverage its repositioned portfolio and capital structure to unlock value for shareholders.
Bottom Line?
Xstate’s divestment and re-listing efforts set the stage for a pivotal drilling campaign that could redefine its growth trajectory.
Questions in the middle?
- What are the expected timelines and success criteria for the Diona-1 well drilling?
- How will the capital raise impact shareholder dilution and future funding needs?
- What are the company’s plans for further portfolio optimization beyond the current assets?
