• Basin Centred Gas (BCG) play supports significant increase in Prospective Resources
• Mean Prospective Resource of 100 Bscfe net unrisked to Xstate
• Preparations underway for flow testing before year end

Xstate Resources Ltd has provided an update on the Prospective Resource estimates for its Diona Block within ATP 2077 located in the Surat-Bowen basin of Queensland. The company's Diona-1 well intersected a gross interval of 181m of hydrocarbon shows in the Permian, with wireline log analysis indicating 116m of gross pay and 23m of net pay. This extended hydrocarbon interval, which is over-pressured and appears to be lacking a water leg, gives rise to the potential for the unconventional Taroom Trough Basin Centred Gas (BCG) play to extend into the Diona Block and across the Diona prospect. An internal review by the company's Competent Person has identified the potential for hydrocarbons to extend over the northern portion of the Diona block, resulting in a revised Prospective Resource distribution. The mean Prospective Resource is now estimated at 100 Bscfe net unrisked to Xstate. The company notes that the testing of the Permian section will be a critical step in understanding the potential of the BCG play in the Diona Block, and further drilling may be required to realise the outlined Prospective Resource. Plans for completion and testing are now underway with a target date of pre-Christmas 2025.

The mean Prospective Resource is estimated at 100 Bscfe net unrisked to Xstate.

Preparations are underway for flow testing of the Diona-1 well before the end of 2025 to further evaluate the potential of the Basin Centred Gas play in the Diona Block.