Diona-1 Well Discovery

• Diona-1 confirms over-pressured Permian gas and condensate
• Hydrocarbons flowing with consistent flare
• JV to seek independently certified Contingent Resource

Xstate Resources Limited (ASX:XST) announced the successful completion of the Diona-1 well in the Surat-Bowen basin of South West Queensland. The well met its exploration objectives, confirming the presence of an over-pressured and recoverable Permian gas and condensate resource. Initial shut-in pressure data indicates an over-pressured reservoir system, with estimated reservoir pressure of approximately 4,300 psi. The well has consistently flowed against a column of stimulation fluid, which is constraining gas flow. The joint venture is confident the well will yield a consistent flow rate after fluid recovery. The JV will pursue an independently certified Contingent Resource and plan for tie-in and connection operations to bring the well into sustained production.

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The joint venture is confident that the well will continue to offload fluids and yield a consistent flow rate, supporting improved sustained production rates.