Xstate Completes Diona-1 Well Pad, Drilling Rig Arrives September 22

Strategic Acquisition and Operational Progress

Xstate Resources Limited has taken a significant step forward in its Queensland gas exploration ambitions by acquiring a 51% interest in ATP 2077 from Elixir Energy Limited. This acquisition positions Xstate as the operator of the Diona Block within ATP 2077, a promising area in the Surat-Bowen Basin known for its hydrocarbon potential.

The company has swiftly moved from acquisition to action, completing the construction of the well pad for the Diona-1 well. This foundational work included installing a cellar and conductor pipe, critical infrastructure components that set the stage for the upcoming drilling operations.

Drilling Preparations and Timeline

The arrival of the Ventia 101 drilling rig, anticipated around 22 September 2025, marks the next phase of the project. With the well pad ready, Xstate is poised to commence drilling operations targeting three proven hydrocarbon reservoirs, Showgrounds, Tinowon, and Wallabella. The relatively shallow depth of the top reservoir at 2,300 meters suggests a drilling timeline of less than 15 days to reach the planned total depth of 2,600 meters.

Managing Director Andrew Bald highlighted the efficiency of the preparatory work, emphasizing the team’s readiness to begin drilling promptly upon the rig’s arrival. This operational momentum reflects Xstate’s commitment to advancing its exploration objectives with precision and speed.

Market Access and Commercial Potential

One of the standout features of the Diona project is its strategic location between the Silver Springs Gas Processing Facility and the Waggamba gas field. The proximity of the Waggamba pipeline, less than 100 meters from the well pad with a valve tie-in point about one kilometer away, offers a potentially rapid path to market should the drilling prove successful.

This logistical advantage could translate into accelerated commercialisation timelines, reducing the typical lead times associated with bringing new gas discoveries to market. The presence of liquids potential alongside conventional gas further enhances the project’s appeal.

Looking Ahead

While the current announcement focuses on operational readiness and infrastructure completion, the true test will come with the drilling results. Success at Diona-1 could significantly bolster Xstate’s asset portfolio and position it as a key player in Queensland’s gas sector. Conversely, the inherent uncertainties of exploration mean that investors will be watching closely for updates on well performance and subsequent development plans.