Xstate Uncovers Promising 181m Gas Column at Diona-1 Well
Xstate Resources reports a significant overpressured gas column at its Diona-1 well in Queensland, hinting at a potentially large unconventional gas resource. Drilling continues with further data acquisition pending.
- Diona-1 well drilled to 2,479m, targeting ~2,530m depth
- 181m overpressured gas column encountered in Permian section
- Primary Jurassic target non-hydrocarbon bearing
- Wireline logging campaign imminent for detailed analysis
- Proximity to existing gas infrastructure offers rapid market access
Exploration Progress at Diona-1
Xstate Resources Limited has provided an encouraging update on its Diona-1 well, located within the Diona block of ATP2077 in Queensland's Surat-Bowen basin. The well has reached a measured depth of 2,479 metres, drilling through both primary and secondary geological targets. While the primary Jurassic target in the Showgrounds Sandstone was found to be well developed, it did not contain hydrocarbons. However, the story took a positive turn upon entering the Permian section.
Significant Gas Discovery in Permian Section
Within the Permian-to-basement sequence, Diona-1 encountered a substantial 181-metre overpressured gas column. This discovery was marked by a drilling 'kick'; a surge of gas that required adjustments to drilling mud weights and careful circulation to manage. Logging While Drilling data indicates multiple hydrocarbon-bearing sandstones in this section, further wireline logging and testing are planned to confirm the extent and commercial viability of these findings.
Strategic Implications and Next Steps
Managing Director Andrew Bald highlighted the potential significance of this discovery, noting that the well may have intersected the updip edge of the Taroom Basin Centred Gas play. If confirmed, this could open the door to proving a much larger unconventional gas resource. The multi-stacked play strategy appears to be paying off, and the team is eagerly awaiting detailed wireline logging results to better understand the reservoir characteristics.
Location and Infrastructure Advantage
The Diona project benefits from its proximity to existing gas infrastructure, situated between the Silver Springs Gas processing facility and the Waggamba gas field. The Waggamba to Silver Springs gas pipeline lies less than 100 metres from the well pad, with a valve tie-in point about one kilometre away. This closeness to infrastructure could facilitate a rapid path to market should commercial quantities of gas be confirmed.
Looking Ahead
Drilling operations are set to continue to the final target depth of approximately 2,530 metres, immediately followed by a wireline logging campaign to acquire additional data. These next steps will be critical in interpreting the full potential of the Diona-1 well and shaping the future development strategy for Xstate Resources in the Surat-Bowen basin.
Bottom Line?
Wireline logging results will be pivotal in confirming the scale and commercial potential of this promising gas discovery.
Questions in the middle?
- What will wireline logging reveal about reservoir quality and hydrocarbon volumes?
- Could Diona-1 confirm a new major unconventional gas play in the Taroom Basin area?
- What are the timelines and costs associated with potential development and pipeline tie-in?
