Xstate Resources has received pre-approval to acquire a 51% stake in the Diona project, setting the stage for drilling operations and ASX trading resumption by late September.
- Pre-approval granted by Queensland Department for 51% ATP 2077 transfer
- Acquisition completion scheduled for 28 August 2025
- Stamp duty paid, transfer form pending execution
- ASX share trading reinstatement anticipated soon
- Drilling operations expected to commence within weeks
Regulatory Green Light for Strategic Acquisition
Xstate Resources Limited (ASX, XST) has taken a significant step forward in its Australian oil and gas ambitions by securing pre-approval from the Queensland Department of Natural Resources and Mines for the transfer of a 51% interest in ATP 2077, known as the Diona sub-block. This approval, granted to Elixir Energy Limited; the current holder of the Authority to Prospect; paves the way for Xstate to formalise its acquisition, pending the execution of a duly stamped transfer form.
Acquisition Timeline and Financial Formalities
The company has confirmed that the necessary stamp duty has been paid, with the transfer documentation set to be executed upon completion of the acquisition, scheduled for 28 August 2025. This milestone is critical not only for ownership consolidation but also for regulatory compliance, ensuring Xstate’s clear title to the Diona project within the Surat Bowen Basin, a region known for its hydrocarbon potential.
ASX Reinstatement and Operational Outlook
Managing Director Andrew Bald highlighted the broader implications of this development, noting that it brings the company closer to reinstating its shares on the ASX. The resumption of trading is expected to unlock liquidity and investor engagement, which are essential for funding upcoming activities. Bald also indicated that drilling operations could commence within a fortnight of reinstatement, with early results anticipated by the end of September. This timeline, while slightly delayed from initial expectations, underscores Xstate’s commitment to advancing its exploration agenda promptly.
Strategic Positioning in Oil and Gas Exploration
With existing assets in California, USA, Xstate’s acquisition of the Diona project marks a strategic expansion into the Australian energy sector. The Surat Bowen Basin is a prolific hydrocarbon province, and securing a majority interest in ATP 2077 positions Xstate to leverage both geological potential and market opportunities. The company’s progress in regulatory approvals and operational planning reflects a methodical approach to growth amid a competitive exploration landscape.
Looking Ahead
As Xstate prepares to transition from acquisition to active exploration, the market will be watching closely for drilling results and the impact of ASX trading resumption on the company’s valuation. The coming weeks will be pivotal in demonstrating whether the Diona project can deliver on its promise and contribute meaningfully to Xstate’s portfolio.
Bottom Line?
Xstate’s regulatory win and imminent drilling mark a turning point, but execution risks remain ahead.
Questions in the middle?
- Will Xstate meet its drilling timeline and deliver promising early results by September?
- How will the ASX reinstatement influence investor sentiment and capital raising efforts?
- What are the financial terms and potential production forecasts tied to the Diona acquisition?