• Preparations for Diona-1 well in Surat Bowen Basin
• 3-stage stimulation program to target gas-condensate formations
• $1.69m capital raising completed to fund production test and potential connection

Xstate Resources Limited (ASX:XST) has provided its Quarterly Activities Report for the quarter ending 31 March 2026. Over the past quarter, the Company, in conjunction with its joint venture partner Elixir Energy Limited, were focused on preparations for the upcoming Diona-1 well within the Taroom Trough on ATP 20771 in the Surat Bowen Basin of Queensland. The 3-stage stimulation program will target 3 hydrocarbon (gas-condensate) bearing formations in the overpressured Permian formations. Thereafter, a 14-day flow test will follow and, if the well flows commercial quantities of gas (and associated liquids), the intention is to connect the well to the pipeline via an above ground connection to the valve approximately 1km west of the well pad. Subsequent to quarter end, the Company has completed a $1.69m capital raising to sophisticated and professional investors, issuing a total of 51.277m shares, with 17.09m free-attaching options to be issued subject to shareholder approval. The funds raised will be utilized for any immediate capital requirements on the production test and potential connection, as well as to ensure the Company is adequately funded moving forward.

The Company is optimistic that the Diona-1 well will produce commercial quantities of gas. If it does, this will see the Company move rapidly to connect to the nearby pipeline, providing a rapid pathway to early sales and revenues within the coming months.