• Re-quotation of Xstate shares on ASX
• Diona-1 exploration well drilled with hydrocarbons interpreted on logs
• Basin Centred Gas prospective resource identified

Xstate Resources Ltd (ASX:XST) has provided a detailed report on its activities during the September 2025 quarter. The company's shares resumed trading on the ASX on 16th September 2025 following a successful public offer capital raising of approximately $2.14m before costs. Eleven days after re-quotation, on 27th September 2025, the company spudded its Diona-1 well on ATP2077 (Diona Block), targeting a low-risk, four-way dip closed anticlinal structure. Subsequent to the quarter end, the Diona-1 well reached a final Total Depth (TD) of 2,479m, and wireline logging indicated a significant gas column over the Bandanna, Tinowon and Wallabella Formations. The company interprets 23m of net pay across these formations, leading to a belief that the well may be in a Basin Centred Gas play with significantly greater prospective resource potential. The company continues to hold working interests in various oil and gas leases in the Sacramento Basin in California, with no changes during the quarter. On the corporate front, Mr Greg Channon was appointed as Non-Executive Chairman, and Mr Andrew Childs transitioned into a Non-Executive Director role. The company's cash balance at the end of the quarter was $2.417m.

The company has not provided any high-importance, price-sensitive forward-looking financial metrics or other company-specific metrics.

The company is optimistic that the flow test will demonstrate the commercial viability of the Diona-1 well and that, all going well, it could be selling gas in the first half of 2026.