• Xstate has acquired a 51% interest in ATP 2077 from Elixir Energy Limited
• Civil works associated with construction of the Diona-1 well pad are now complete
• Cellar and conductor pipe have been installed, lease is ready for arrival of the Ventia 101 drilling rig

Xstate Resources Limited (ASX:XST) has provided an operational update on the drilling of Diona-1 well, located in the Diona Block of ATP 2077 in the Surat-Bowen Basin, Queensland, where XST has a 51% working interest and is the Operator. The civil works associated with the construction of the well pad are now complete, with a cellar and conductor pipe having been installed ahead of the spud of Diona-1. The lease is now ready for the arrival of the Ventia 101 drilling rig, which is anticipated to arrive around the 22nd of September 2025. The Diona project is a shallow, conventional gas prospect (with liquids potential) that is ideally placed adjacent to the Waggamba to Silver Springs gas pipeline. The Diona-1 well targets 3 proven hydrocarbon reservoirs being the Showgrounds, Tinowon and Wallabella, with the top of the Showgrounds being only 2,300m. If the well is successful, there is potential for a rapid path to market given the proximity of the Waggamba pipeline, which is less than 100m from the well pad.