Xstate Resources Logs 4,139 psi at Diona-1 Ahead of Critical Production Test
Key Takeaways
- The Diona-1 Static Gradient Survey recorded wellhead pressure of approximately 3,235 psi — more than double the 1,600 psi measured at shut-in — with maximum downhole pressure of 4,139 psi at 2,411m TVD.
- Fluid level receded more than 1,800m to approximately 2,325m TVD, placing it below the Black Alley/Bandanna perforated intervals and leaving the upper wellbore gas-filled.
- Xstate's technical advisors interpret the pressure gradient of approximately 0.52 psi/ft as consistent with an overpressured, gas-filled reservoir column.
- The SGS is a planning instrument, not a flow test — commercial deliverability and sustainable flow rate will only be assessed at the proposed controlled flowback and production test, which is the next material milestone.
- Xstate holds a 51% working interest in ATP 2077's Diona sub-block, with Elixir Energy (ASX: EXR) holding 49% and acting as Operator; the well was spudded on 27 September 2025.
Pressure builds at Diona-1 as SGS delivers encouraging subsurface data
Xstate Resources (ASX: XST) has released a technical update on its Diona-1 exploration well in the Diona sub-block of ATP 2077, Surat-Bowen Basin, southwest Queensland. A Static Gradient Survey (SGS) completed at the well has returned pressure and fluid-level data interpreted as consistent with a pressurised, gas-filled wellbore, setting the stage for the next phase of testing.
When big ASX news breaks, our subscribers know first
What the SGS results mean
Survey purpose and methodology
A Static Gradient Survey is a downhole measurement conducted under static well conditions — meaning no active flow or pumping — to assess pressure and fluid levels within the wellbore. The purpose is diagnostic: it tells the technical team what is happening inside the well at rest, and that information feeds directly into planning for subsequent operations.
It is important to set clear expectations here. An SGS is a planning tool, not a production test. It does not establish whether the well can flow gas at a commercially viable rate. That determination comes later.
Reading the pressure data
The SGS results from Diona-1 produced four headline metrics:
- Fluid level receded more than 1,800m to approximately 2,325m TVD (true vertical depth)
- The fluid level is interpreted to be below the top of the Black Alley/Bandanna perforated intervals, meaning the wellbore above 2,325m TVD is gas-filled
- Wellhead pressure measured at approximately 3,235 psi, up from approximately 1,600 psi at shut-in
- Maximum downhole pressure of 4,139 psi at 2,411m TVD
Xstate’s technical advisors interpret the downhole pressure as consistent with an overpressured reservoir. The measured pressure equates to an average gradient of approximately 0.52 psi/ft over 2,411m TVD, consistent with a gas-filled column through most of the wellbore.
These static measurements are also consistent with earlier observations of gas breakthrough and tubing-head pressure recharge during flowback while completion fluid remained in the wellbore — reinforcing the picture of a pressurised subsurface system.
What this means for the investment case
Conditions set for controlled flowback and production test
The SGS data feeds directly into planning for the proposed controlled flowback and production test, which is the next material milestone for Diona-1. That test is where sustainable flow rate and commercial deliverability will actually be assessed — the two questions the SGS was explicitly not designed to answer.
Managing Director Andrew Bald was straightforward on this point:
Andrew Bald, Managing Director
“The SGS provides updated fluid-level and pressure measurements following the earlier flowback program. The lower liquid level and gas-filled upper wellbore will be relevant to planning the next phase of testing. The purpose of the SGS was not to test a sustainable flow rate nor commercial deliverability. Those matters will be assessed by the proposed controlled flowback and production test.”
Project context and infrastructure setting
Diona-1 is located within the Diona sub-block of ATP 2077 in the Surat-Bowen Basin, southwest Queensland. Xstate holds a 51% working interest, with Elixir Energy (ASX: EXR) holding the remaining 49% and acting as Operator. The well was spudded on 27 September 2025.
The location map included in the announcement shows the Diona project situated in proximity to existing gas pipeline infrastructure and neighbouring gas fields, providing a supportive backdrop for the project’s broader development context.
| Parameter | Detail | XST Interest | Operator |
|---|---|---|---|
| Permit | ATP 2077 / Diona sub-block | 51% | Elixir Energy (ASX: EXR) |
| Basin | Surat-Bowen / Southwest Queensland | — | — |
| Well spudded | Diona-1 / 27 September 2025 | — | — |
| Next step | Controlled flowback and production test | — | — |
The next major ASX story will hit our subscribers first
What’s next for Diona-1
The SGS marks a methodical step forward rather than a decisive result. The data gathered will now inform the planning process for the next phase of activity. What comes next, as the announcement outlines:
- SGS data to be used in planning for the production test
- A controlled flowback and production test is proposed as the next phase
- Commercial deliverability and sustainable flow rate will be assessed at that stage
The pressure and fluid-level picture from the SGS is encouraging in technical terms. The company has been measured in how it characterises that — the SGS was a planning instrument, and the data it produced will be put to work in designing the test that actually matters for commerciality.
Get ASX Energy News Before the Market Moves
Big News Blast delivers FREE breaking ASX energy news directly to your inbox within minutes of release, complete with in-depth analysis. Join 30,000+ subscribers already staying ahead of market-moving developments. Click the “Free Alerts” button at Discovery Alert to start receiving alerts the moment news breaks.