Xstate Resources (ASX:XST) completes stimulation at Diona-1 ahead of flow testing

Xstate Resources has provided an operational update on its Diona-1 well at ATP2077 in South West Queensland’s Surat-Bowen Basin, where the company holds a 51% interest alongside Elixir Energy, which holds the remaining 49%.

The company said stimulation and flow testing operations are progressing smoothly and in line with the operator’s schedule, with all zones now successfully stimulated.

Highlights

• Diona-1 is located on ATP2077 in South West Queensland’s Surat-Bowen Basin
• Xstate holds a 51% interest in the project
• Elixir Energy holds the remaining 49% interest
• All zones have been successfully stimulated
• Stimulation equipment is now being demobilised
• Methane gas indications were recorded during routine flowback
• Coil tubing operations are underway to mill out temporary plugs
• A 14-day flow testing and pressure monitoring process will commence following completion activities

Xstate stated that stimulation and flow testing operations at Diona-1 are progressing smoothly and according to schedule.

The company confirmed all zones have been successfully stimulated and said stimulation equipment is being demobilised from site following that work.

During the routine flowback period following final stimulation, the company said indications of methane gas were recorded on a hand held gas meter.

The release did not provide further technical detail beyond confirming that the indications were recorded during this process.

The next phase of operations involves the coil tubing unit milling out temporary plugs ahead of running the completion, after which Xstate said a 14-day flow testing and pressure monitoring process will commence.