• Diona 1 well in Queensland's Surat-Bowen Basin to spud on 26th September 2025
• Targeting 3 proven hydrocarbon reservoirs: Showgrounds, Tinowon and Wallabella
• Well expected to reach total depth of 2,600m in 7-8 days

Xstate Resources Limited (ASX:XST) is pleased to provide an operational update on the drilling of the Diona-1 well, located in the Diona Block of ATP 20771 in the Surat-Bowen Basin, Queensland. Xstate holds a 51% working interest and is the Operator of the Diona Block. The drilling rig arrived on site as scheduled on 22nd September 2025, and the drilling team has been assembling at the site and setting up the rig in preparation for the spud of the Diona-1 well at 1700 on Friday, 26th September 2025 (Queensland time). The well is expected to take 7-8 days to reach the top of the Showgrounds formation, the primary target at 2,300m. If the Showgrounds formation proves prospective for hydrocarbons, the well will be cased, and drilling will continue through the lower Tinowon and Wallabella formations to a total depth of 2,600m. 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, with the potential for a rapid path to market if the well is successful.