• Diona-1 well spudded on 27th September 2025
• Currently at 549m, running and cementing 9 & 5/8' casing
• Targeting Showgrounds, Tinowon and Wallabella formations at 2,300-2,600m

Xstate Resources Limited (ASX:XST) has provided an operational update on the drilling of the Diona-1 well, located in the Diona Block of ATP 2077 in the Surat-Bowen Basin, Queensland. Xstate has a 51% working interest and is the Operator of the well. The Ventia 101 rig is fully operational, and Diona-1 was spudded on 27th September 2025. At the time of the announcement, the well had reached 549m and the company was running and cementing the 9 & 5/8' casing. Once the casing is in place, Xstate will drill out in an 8 &1/2' hole to the first target, the Showgrounds formation, expected to be encountered at around 2,300m. Drilling is expected to take 7-8 days. After casing the Showgrounds, the well will continue through the lower Tinowon and Wallabella formations to a total depth of 2,600m. The Diona-1 well is targeting a low-risk, four-way dip closed anticlinal structure at the Showgrounds, Tinowon and Wallabella Sandstone levels. The prospect has a stratigraphically trapped upside in the Tinowon and Wallabella Sandstones, and is ideally located for gas (and possibly oil) charge due to its position on a prominent nose that plunges to the east into the Permian source kitchen.