• Transfer of 51% interest in ATP 2077 to Xstate registered
• Diona-1 well progressing well, expected to reach Showgrounds formation soon
• Targeting the Showgrounds, Tinowon and Wallabella formations at depths between 2,300m and 2,600m

Xstate Resources Limited (ASX:XST) has provided an operational update on the drilling of the Diona-1 well in the Diona Block of ATP 2077 in the Surat-Bowen Basin, Queensland. The company is pleased to confirm that its 51% interest in ATP 2077 has been registered on title as of 29th September 2025, with Xstate as the Operator. As of the morning of 2nd October 2025, the Diona-1 well had reached approximately 1,130 metres and was progressing well, with the Ventia 101 rig achieving a net Rate of Penetration of about 60m per hour. The company now expects to reach the top of the Showgrounds formation, the first target at 2,300m, late on Friday, 3rd October 2025 or early on Saturday. This is in line with the forecast timeline. Once wireline and mudlogging is completed for the Showgrounds, a decision will be made about casing the Showgrounds and drilling on through to the Tinowon and Wallabella formations, which are also targets for the well. The Diona-1 well is targeting a low-risk, four-way dip closed anticlinal structure at the Showgrounds, Tinowon and Wallabella Sandstone levels, with the potential for a stratigraphically trapped upside in the Tinowon and Wallabella Sandstones. With an estimated well cost of $2.7m, a chance of geologic success of 55%, and 12.5 Bscfe of gross unrisked mean prospective resources, the company believes the Diona-1 well represents an excellent risk-reward proposition.