• Over-pressured hydrocarbons confirmed in Diona-1 well
• Diona-1 produced consistent flow of hydrocarbons to surface
• Well suspended pending review of artificial lift alternatives
• $1.69m raised to fund completion works
• Mr Uno Makotsvana appointed as new Company Secretary

Xstate Resources Ltd has released its Quarterly Activities Report for the quarter ending 30 June 2026. The Company, in conjunction with its joint venture partner Elixir Energy Limited, completed a 2-stage stimulation of the Diona-1 well within the Taroom Trough in the Surat Bowen Basin of Queensland. The stimulation targeted the upper formations comprising the Tinowon, Black Alley, and Banadana formations. Although approximately 45% of the 6,400 barrels of completion fluids were recovered, the process was slow, leading to the suspension of operations. The JV initiated a review of artificial lift options to remove the remaining completion fluids and establish an unimpeded gas flow. The Company successfully raised $1.69m to fund the completion works, with $1.248m remaining at the end of the quarter. Mr. Uno Makotsvana was appointed as the new Company Secretary.

Xstate Resources Ltd expects to continue operations based on existing cash and the option to raise equity for future work.

The Company expects to continue operations based on existing cash, lower forecast activity, reduced overheads, active expenditure management, and the option to raise equity for future approved work programs.