• Wireline logs confirm 3 zones of net gas pay in Permian sandstone formations
• 23m of net pay identified with porosity up to 10% average
• Potential upside in unlogged Wallabella Formation

Xstate Resources Limited has provided an update on the wireline logging results of the Diona-1 well within the Diona block of ATP20771 located in the Surat-Bowen basin of Queensland. The wireline logs have confirmed 3 zones of net gas pay in Permian sandstone formations, consistent with the data obtained from the Logging While Drilling (LWD) tools and the mud logs. Due to challenging downhole operational conditions, wireline tools were not able to be run across the entirety of the Wallabella Sandstones, and these sandstones were not able to be comprehensively analyzed. The logging has identified a total of 23m of net pay, with porosities up to 10% average. The company notes potential upside in the unlogged Wallabella Formation. The Diona-1 well has been cased and cemented, and the joint venture is now preparing for production testing to collect data on each of the 3 key pay zones with a view to revising the existing resource estimates.

The company is very optimistic that production testing could reveal more upside from the unlogged Wallabella formation. The proximity to existing infrastructure provides potential for a rapid path to market.