• Xstate has signed a drilling contract with Easternwell Group Operations to drill the Diona-1 well
• Drilling rig to be mobilized on 21st September 2025, with expected spud date of 26th September
• Diona-1 well targets 3 proven hydrocarbon reservoirs in the Surat-Bowen Basin, Queensland

Xstate Resources Limited (ASX:XST) has signed a drilling contract with Easternwell Group Operations Pty Ltd, a subsidiary of Ventia Services Group Limited, to drill the Diona-1 well located on the Diona Block of ATP 2077 in the Surat-Bowen Basin, Queensland. Xstate owns a 51% interest in ATP 2077, with Elixir Energy Limited (ASX:EXR) retaining 100% beneficial ownership in Blocks A and B. The Diona-1 well targets 3 proven hydrocarbon reservoirs - the Showgrounds, Tinowon and Wallabella. With the top of the Showgrounds at only 2,300m, the well is expected to reach its total planned depth of 2,600m in less than 15 days. If successful, the well could have a rapid path to market given its proximity to the Waggamba to Silver Springs gas pipeline, which is less than 100m from the well pad. Xstate has requested that the drill rig be mobilized on 21st September 2025, with an expected spud date around 26th September 2025. The company is fully engaged on drilling this well and anticipates seeing early drilling results in the first weeks of October 2025.