Diona-1 Well Logs 23m Net Gas Pay with 10% Porosity in Permian Sandstones
Xstate Resources has confirmed 23 meters of net gas pay across three Permian sandstone zones in its Diona-1 well, setting the stage for upcoming flow testing that could redefine resource estimates.
- 23 meters of net gas pay confirmed in three Permian sandstone zones
- Porosity averages around 10%, indicating good reservoir quality
- Well reached 2,479m depth with casing and cementing completed
- Operational challenges limited full logging of Wallabella formation
- Next steps include flow testing and potential zone stimulation
Encouraging Gas Pay Results from Diona-1
Xstate Resources Limited (ASX – XST) has announced promising wireline logging results from its Diona-1 well, located in the Surat-Bowen basin of Queensland. The well confirmed three distinct zones of net gas pay within Permian sandstone formations, totaling 23 meters. These findings align with earlier data from Logging While Drilling and mud logs, reinforcing the potential of the Diona block.
The confirmed zones, Bandanna, Black Alley, and Tinowon sandstones, exhibit porosities averaging around 10%, a positive indicator of reservoir quality. However, challenging downhole conditions prevented comprehensive logging of the Wallabella sandstone, leaving some upside potential unquantified for now.
Operational Milestones and Next Steps
The Diona-1 well reached a total depth of 2,479 meters before drilling was concluded due to difficult hole conditions. Following this, casing was successfully run and cemented in place, preparing the well for the next critical phase – flow testing. The joint venture partners are now formalizing an operations committee to finalize plans for testing and potential stimulation of the three key zones independently. This approach aims to gather detailed data to refine existing resource estimates.
Managing Director Andrew Bald expressed optimism, highlighting the encouraging nature of the results and the potential for further upside from the unlogged Wallabella formation. He emphasized that production testing will be pivotal in confirming flow rates and assessing the commercial viability of what could be a new gas discovery.
Strategic Location and Market Potential
The Diona project benefits from its strategic location near existing gas infrastructure, including the Waggamba gas field and the Silver Springs Gas processing facility. The proximity to the Waggamba to Silver Springs gas pipeline, less than 100 meters from the well pad, offers a potential rapid path to market, which could accelerate development timelines if commercial flow rates are confirmed.
Xstate holds a 51% interest in ATP 2077, with Elixir Energy Limited retaining beneficial ownership of certain blocks. The collaboration between these parties will be crucial as the project advances through testing and potential production phases.
Bottom Line?
With flow testing imminent, Xstate’s Diona-1 well could soon reveal whether this promising gas pay translates into a commercially viable resource.
Questions in the middle?
- What flow rates will the upcoming production tests confirm for each gas zone?
- Could stimulation of the Wallabella formation unlock significant additional resources?
- How will these results impact Xstate’s development timeline and capital allocation?
