Xstate Resources Ltd

Operator Elixir says Diona-1 testing is paused. About 46% of injected fluid returned, short of the 50-60% target, so artificial lift is being assessed. Sproule ERCE is briefed to book a contingent resource. Contradicts hopes of the well flowing naturally. Partner's release.

joint venture update

Joint venture says Diona-1 met its exploration objectives, confirming over-pressured Permian gas and condensate, with ~4,300 psi estimated reservoir pressure. About 45% of ~6,400 barrels of completion fluid recovered; fluid column still limits flow. Independent contingent resource to be sought; no sustained flow rate yet.

well test result

Xstate raises $1.69m through 51,277,122 shares at $0.033, with one $0.06 option per three shares, to fund extended production tests and a pipeline connection, or cover stimulation overruns. Stimulation by Condor Energy is due to start by the end of the week.

capital raising announcement

Xstate assigns all its California interests (10-33% working interests) to Australian Oil and Gas (AOK) for forgiveness of US$95,103 (about A$143k) of unpaid cash calls. AOK takes on the obligations, leaving Diona as Xstate's sole focus. This ends the California portfolio review.

asset acquisition disposition

Firm commitments to raise just over $3.82m at $0.022 per share in two tranches: $829,556 now and $2.99m subject to shareholder approval. Investors get one $0.04 four-year option per two shares. Funds go to Diona-1 testing, exploration and working capital.

capital raising announcement

Xstate's internal estimate lifts Diona prospective resource to a mean 100.5 Bscfe net to Xstate, from 6.4 Bscfe, on a possible basin-centred gas play. Chance of discovery is put at 38%. Not yet reviewed by the JV. Flow testing is targeted before Christmas 2025.

resource reserve update

Logs confirm 23m of net gas pay (116m gross) in three Permian zones, with average porosity about 10%. Wells is cased and cemented at 2,479m final depth. Wallabella could not be fully logged. Flow testing is still to be planned and agreed.

drilling result

Diona-1 reached 2,479m. The main Showgrounds target had no hydrocarbons, but a 181m gas-bearing Permian section was hit, including an overpressured gas kick. Wireline logging is pending. This was an unexpected result, and the Managing Director raises the possibility of a larger unconventional gas play.

drilling result

Diona-1 spudded on 27 September 2025, a day later than planned, and had reached 549m while running casing. Xstate holds 51% and operates. The Showgrounds target at about 2,300m should be reached in 7-8 days.

drilling spud

Greg Channon replaces Andrew Childs as Non-Executive Chairman; Childs stays on as a non-executive director. Channon is also Chief Geoscientist at Elixir Energy, the 49% partner in Diona, which is a related link worth noting.

director officer appointment

Trading suspension lifted from the start of trading on 16 September 2025 after re-compliance with ASX listing rules. Shares trade again for the first time since the 26 August 2024 suspension.

listing compliance notice

Drilling contract signed with Easternwell (Ventia) for Diona-1, with rig mobilisation requested for 21 September and spud expected around 26 September. Management hopes for early results in the first weeks of October, a little later than the end-September hope.

contract award

ASX says Xstate shares will be reinstated on 16 September 2025. The offer issued 107,200,000 shares at $0.02 (A$2,144,000), giving 251,380,863 shares. 16,440,000 lead manager options at $0.04 are escrowed for 24 months.

capital raising announcement

The re-compliance offer is completed, raising about $2.14m before costs. Diona acquisition completion now 4 September, reinstatement 11 September (ASX discretion), a further slip from 9 September. Drilling contract to be signed within a week, rig expected week of 22 September.

capital raising announcement

Xstate says it has raised more than the $2.0m minimum from over 300 new applicants, putting it in position to meet ASX's reinstatement conditions. Timetable unchanged: completion 28 August, reinstatement 9 September 2025, at ASX's discretion.

capital raising announcement

PAC Partners and BW Equities appointed joint lead managers for a prospectus raise of $2m minimum to $3m maximum at $0.02 per share, conditional on a 2.23:1 consolidation. Fee is 6% plus up to 25 million options at $0.04. Up from the earlier $1.5m minimum.

capital raising announcement

ADX agrees to take Xstate's 20% Anshof interest for EUR 547,075, set off against unpaid cash calls, subject to MND consent. Xstate then has no further Anshof rights or obligations. This ends its Austrian production exposure, begun with the 2021 farm-in.

asset acquisition disposition

Andrew Bald, a non-executive director since June 2022, becomes Managing Director from 4 April 2025 on $235,000 a year (0.6 FTE). Andrew Childs moves from Executive Chairman to a non-executive role, tied to the Diona-led operating push.

director officer appointment

Xstate signs to acquire 51% of the Diona Gas Project in Queensland from Elixir, paying a $250,000 deposit and sole-funding the Diona-1 well, targeted for Q3 2025. ASX gave in-principle re-admission advice, subject to re-compliance. Resolves the search for a project.

asset acquisition disposition

Xstate sold its 25% Crest Jinn interest to Blue Sky for a 3% overriding royalty on 25% of production, valued at about C$10,500. It says talks with Blue Sky reached an impasse and exit removes restoration liabilities. Leaves Austria and California.

asset acquisition disposition

Having not completed an acquisition by the 26 August ASX deadline, Xstate says its shares will be suspended. It says it is in continuing negotiations on potential acquisitions. This is the outcome of the Guidance Note 12 deadline set in February.

listing compliance notice

ASX suspended Xstate's shares immediately, finding its level of operations inadequate to justify continued quotation (Listing Rule 12.1 breach). Suspension lasts until ASX is satisfied the company complies and reinstatement is appropriate.

listing compliance notice

Xstate received the final Red Earth payment of US$1,327,273 (about A$1.973m), completing the sale of its 25% interest. The Chairman says it recapitalised the company without dilution, with proceeds to fund acquiring new exploration assets.

asset acquisition disposition

Xstate agreed to sell its 25% Red Earth interest to Blue Sky for US$2.73m (about A$4.17m), keeping its Crest Jinn Keg River acreage. It needs shareholder approval as a sale of its main undertaking, and ASX has set 26 August 2024 for it to show it merits continued listing.

asset acquisition disposition

Xstate will not take part in the Anshof-2 well, calling it a non-core asset and not an appropriate use of funds. It keeps its 20% in Anshof-3. The board is reviewing strategy, which may mean buying bigger exploration assets and trimming non-core ones.

farm in farm out agreement

Xstate received C$1,007,731 (about A$1.17m) from Blue Sky as full and final payment, completing the sale of its 35% Alberta Plains interest. This closes the sale agreed in July 2023.

asset acquisition disposition

ADX completed its deal with MND, which now holds a 30% economic interest in Anshof after paying EUR 1.93m of past costs. ADX keeps 50% and Xstate's 20% is unchanged. Anshof-2 drilling is expected in Q4 2023, funded by MND.

farm in farm out completion

Operator ADX signed a deal for MND Austria to fund the Anshof-2 and Anshof-1 wells to earn a 30% economic interest, up to EUR 11.52m. ADX keeps 50% and Xstate's 20% is unchanged. Conditional on Austrian ministry clearance; Anshof-2 targeted for Q4 2023.

farm in farm out agreement

Xstate agreed to sell its 35% Alberta Plains interest to Blue Sky for C$1.575m, netting about A$1.2m after C$492,965 owed to Blue Sky. Those are the wells drilled in 2022. Sale needs any required approvals and completes 60 days after signing.

asset acquisition disposition

Two Keg River oil wells acquired in February are now producing in Alberta, at 170 bopd gross (43 bopd net to Xstate), a 9% rise in Canadian production. Operator plans to drill one of the 10 mapped prospects later this year.

production update

Austria's Ministry of Finance awarded ADX a production licence for the Anshof field, in which Xstate holds 20%. This resolves the licence step after the interim 37,000-barrel limit, and allows Anshof-2 and Anshof-1 drilling from Q3 2023. Rate is to rise to about 150 bopd.

regulatory community update

Xstate announced a 10-for-1 share consolidation, cutting shares from about 3.215 billion to about 321.5 million. Options convert on the same basis, with exercise price rising from 0.5c to 5c. It needs shareholder approval at the 13 March 2023 meeting.

security holder rights change

Xstate bought a 25% interest in two completed oil discoveries and 10,240 gross acres next to Red Earth from operator Blue Sky, for C$750k net, funded from cash. A C$66,250 per-well payment applies if each well exceeds 100 bopd. Ten prospects are mapped; drilling is planned in 2023.

asset acquisition disposition

Independent assessor RISC put Anshof 2P reserves at 5.2 million barrels gross, with a gross NPV8 of EUR 42.3m. Xstate's 20% share is 1.04 million barrels, worth about A$13.4m. This answers the open reserve assessment; 3P is 12.5 million barrels gross.

resource reserve update

Xstate confirms Anshof-3 started commercial production at a restricted 100 bopd gross, 20 bopd net to its 20% interest. This is the first Austrian production, resolving the wait since the January 2022 discovery. It largely repeats ADX's release.

production update

Operator ADX signed a lease for an early production system and an oil sales agreement with RAG E&P, setting commercial Anshof-3 production for mid-October 2022. Expected rate is about 100 bopd gross; processing and transport cost is about US$11 per barrel. Xstate holds 20%.

material agreement

Updated Anshof-3 analysis with downhole pressure data shows a maximum flow of 132 barrels of oil a day, up from the earlier 75, with no flow barriers near the well. The well was acidised and fitted with a pump. ADX plans an early production facility for truck sales; Xstate holds 20%.

well test result

Anshof-3 flowed water-free 32° API oil at about 75 barrels a day gross (15 net to Xstate's 20%) from the 6m Eocene zone, within expectations. This resolves the testing wait; a pump and likely acidising come before truck sales.

flow test result

Logging confirms the Anshof-3 discovery: about 6m of oil at the Eocene target (2.5-4m likely net pay) and 14m of expected gas pay. The 11m Cenomanian oil zone is unlikely productive. Eocene thickness is at the low end of predrill expectations. The well will be cased and tested.

drilling result

Preliminary drilling data indicate oil over a 9m gross interval at Anshof-3's primary Eocene target and a 20m gross shallow gas zone. This is a first sign of success at the well Xstate is earning 20% of; logging is needed to confirm.

drilling result

Xstate farms into a 20% interest in ADX's Anshof prospect in Austria, paying 40% of the well up to €1.8m; expected cost about A$1.2m dry hole. Mean prospective resource 6.6 MMBOE gross, 43% chance of success. Also commits to three Alberta Plains development wells.

farm in farm out agreement

Operator Sacgasco says the pipeline owner imposed severe volume restrictions on the planned Borba gas route, so the venture is studying making hydrogen on site. This is a feasibility study only. It signals a delay to selling Borba gas by pipeline.

joint venture update

Xstate raises $1m through a placement of 250 million shares at 0.4c to domestic investors. Funds go to Borba infrastructure, workovers in California and Canada, and working capital. Follows the $4m raise at 0.8c in February, at a lower price.

capital raising announcement

David McArthur retires as Managing Director after 19 months, staying as a director and joint company secretary. Andrew Childs, already chairman, becomes Executive Chairman running the company day to day, tasked with refocusing it as a Canadian oil producer.

director officer appointment

Xstate buys a further 25% of Alberta Plains (to 35%) for C$1.25m: C$300k cash and C$950k in shares at 0.4c. Adds 178 BOEPD; Canadian net output 474 BOEPD. The April ABC Assets deal is terminated, as Alberta Plains was judged better value.

asset acquisition disposition

Borba 1-7 Kione sands flowed dry gas at a stable 1.6 million cubic feet a day through a small choke. Operator expects to produce about 3 mmcfpd. Xstate holds 33.33%. This follows the March gas discovery and is the first flow result after the poor deeper Guinda logs.

well test result

Xstate agrees to buy 25% of Blue Sky's interests in 31 Alberta and British Columbia fields, about 1,500 BOEPD net, for CAD$1m plus 71.4m shares at 0.7c. Lifts Canadian share to about 1,800 BOEPD; 2P reserves 8.03m BOE. Subject to 45-day due diligence and approvals; close expected in Q3.

asset acquisition disposition

Borba 1-7 reached total depth of 8,827 feet. Lower Guinda shows only 10 feet of log pay, judged sub-commercial, and deeper amplitudes were hard streaks, not gas. Hope now rests on testing the Kione. Canadian net production rose to 311 BOEPD.

drilling result

Xstate settles its 25% purchase of the Red Earth oil fields, completing the deal agreed in November 2020 and extended in March. Fields produced 1,070 BOEPD gross at closing, 268 BOEPD net to Xstate.

asset acquisition disposition

Xstate buys a further 10% of the Red Earth oil fields for CAD$700,000 plus A$150,000 of shares (10.1m at 1.48c, subject to shareholder approval), lifting its stake to 25%. Adds about 100 bopd net; closing expected by end of March 2021.

asset acquisition disposition

Logs confirm a gas discovery at Borba 1-7: 28 metres of net gas pay in the Kione sandstone, plus 14 metres of possible pay, with 14-27% porosity. It is cased and awaits later flow testing. This confirms the earlier gas shows; the deeper Guinda target is next.

drilling result

Borba 1-7 spudded on 21-22 February 2021, ending the long delay since 2018 plans. Drilling ahead at 262 feet toward 13 3/8 inch casing at about 1,800 feet. Xstate pays 37.5% of costs for a 33.33% interest. Well expected to take 25-35 days.

drilling spud

Independent report (ERCE) gives Borba a mean unrisked prospective gas resource of 141 Bcf gross, 38 Bcf net to Xstate, with a 70% chance of finding at least one gas zone. These are undrilled prospect estimates, not discovered gas. Spud is expected this week.

resource reserve update

Xstate closes the 10% Alberta Plains oil asset purchase announced on 28 January. Current output is about 100 bopd, with reactivation aiming for 500 bopd gross. Xstate has paid its AUD$85,000 share of reactivation costs to the operator.

asset acquisition disposition

Xstate raises $4m via a 500m-share placement at 0.8c, to fund Borba drilling and working capital. It also earns a further 9.33% of Borba by paying 13.5% more of the well cost, lifting its interest from 24% to 33.33%. The 10% Alberta deal's vendor purchase has completed.

capital raising announcement

Xstate agrees to buy a 10% interest in southern Alberta oil fields (about 50 bopd net) for CAD$250,000 cash plus 10.9m shares at 0.64c. Proved reserves net to Xstate are 366,560 BOE. Adds to Red Earth, taking Alberta to about 200 bopd net. Closing is due by 10 March.

asset acquisition disposition

Xstate buys a 15% interest in the Red Earth oil fields in Alberta (about 150 barrels a day net) for CAD$300,000 plus 58.3m shares at 0.3c. 1P reserves are 0.66m barrels net. A 362m-share placement at 0.25c raises $905,000. Sacgasco holds 30%.

asset acquisition disposition

Xstate raises $562,000 through unsecured convertible notes at a 0.2c conversion price, 10% interest, maturing in 12 months. Conversion needs shareholder approval. Funds go to Sacramento workovers, exploration costs, assessing producing-asset acquisitions and working capital.

capital raising announcement

Andrew Childs joins as a non-executive director; he runs Petroleum Ventures, which the text says is Xstate's largest shareholder, and chairs operator Sacgasco. Richard Lorentz resigns after about five months.

director officer appointment

Operator Sacgasco received the final drilling permit for Borba 1-7 in the Anzus Project; Xstate holds 24%. Drilling is planned for late January to early February 2020 to test 16 stacked anomalies down to about 2,800 metres. Working interests in the well are still being finalised.

drilling scheduled

Xstate raises $570,000 by placing 285m shares at $0.002, down from 0.3c in late 2018, partly to fund Sacramento Basin work. Managing Director Damiano and director Tchacos resign; Richard Lorentz joins and David McArthur returns as interim MD while a replacement is sought.

capital raising announcement

Xstate and Mosman mutually terminate the Champion Project farm-in announced in May, with Xstate paying about A$50,000 as a break fee. It cites drilling delays, ending its Texas foothold and the plan to drill two wells there; other US assets are being assessed.

material agreement termination

Xstate signs a binding farm-in with Mosman Oil & Gas to earn 25% of the Champion Project, Newton County, Texas, by funding 33.33% of a two-well program costing about US$400,000 from existing cash. First well targets 1.9 BCF, starting early Q3 2019. Marks a shift from California.

farm in farm out agreement

Xstate agreed not to sue Hong Hung Thiam in return for A$500,000, paid in five instalments to mid-May 2019; A$100,000 already received. This is the first cash from the US$33m judgment. Bankruptcy hearing adjourned to 23 May; Tanzil contempt case continues.

material agreement

Xstate signs a strategic alliance with TSX-listed Hillcrest Petroleum to jointly pursue oil and gas acquisitions in onshore Canada and the USA. No deal, price or funding is stated; it follows the long, unsuccessful search for production assets.

material agreement

Operator Sacgasco is acquiring Raven/Bombora's interests in the Alvares, Dempsey and Dempsey Trend projects. Xstate's Alvares interest rises from 21% to 25%, with Dempsey unchanged at 10% and Anzus/Dempsey Trend at 24%. The Alvares re-entry is delayed to the North American summer.

joint venture update

Xstate raises about $611,000 through a placement of about 203.7m shares at $0.003, to fund its Sacramento Basin share and the Alvares re-entry. This follows the October $1.0m placement announcement.

capital raising announcement

Raven defaulted on the Dempsey sale, failing to pay about US$410,000 and issue A$250,000 of shares by 31 October, so Xstate terminated it. Xstate keeps roughly US$88,500 and 138.9m Raven shares, and retains its 10% Dempsey interest.

asset acquisition disposition

Xstate raises $1.0m via a two-tranche placement of about 333m shares at $0.003 each, plus about 33m shares to directors in lieu of $100,000 owed. This funds its 21% share of the Alvares re-entry; tranche 2 ($650,000) needs shareholder approval.

capital raising announcement

Xstate and Raven varied the Dempsey sale: Raven pays another US$20,000 (US$90,000 total) and issues about 139m shares (A$250,000) by 31 August. The US$410,000 cash and remaining A$250,000 shares are due by 31 October 2018; otherwise payments are forfeited.

asset acquisition disposition

Operator Sacgasco reported Dempsey 1-15 was selling pipeline-quality gas at a combined ~1,300 mcf/d from all four producing zones. Xstate holds a 10% working interest, which was then being sold to Raven.

production update

Operator Sacgasco says Dempsey 1-15 will shortly sell gas at about 1,200 mcf/d from the Kione field-level zone plus Zones 2-4 combined. Zone 4 added little (175 mcf/d combined with Zones 2-3). Xstate holds 10%, but is selling it to Raven.

production update

Dempsey 1-15 flowed 1,000 Mcf/day of water-free gas from the field-level Kione sandstone, which the operator calls commercial and says should double its operated gross Sacramento production. A much stronger result than the deeper zones' 140-195 mcf/d. Xstate holds 10%.

flow test result

Xstate agreed a binding letter of intent to sell its Dempsey interests (via XGas LLC) to Raven Energy for US$500,000 cash plus A$500,000 in cash or Raven shares at A$0.0018. Completion is expected by 15 July 2018. Proceeds are to fund Alvares; it is conditional on due diligence.

asset acquisition disposition

Operator reports Sacramento Basin gross gas production up about 70% to over 1,000 Mcf/day (Xstate net about 170), worth roughly US$15,000 a month to Xstate. Gross output is targeted at 1,500 by end March and 2,000 by end June 2018.

production update

Singapore's High Court registered the WA judgment against the three defendants, so Xstate can enforce it there. With interest the total is US$34,800,894.86. The defendants' 18 January WA appeal date has passed; enforcement awaits a 14-day period after service.

regulatory community update

Gas sales from Dempsey 1-15 have started at about 140 mcf/day of dry gas. Stimulation permitting is proceeding, with field work expected in the first quarter of 2018. Xstate holds 10%.

production update

Dempsey 1-15's second zone flowed about 140 mcf/d with no water; shut-in pressure topped 6,000 psi. Sacgasco calls it a significant discovery with low permeability, and plans fracture stimulation, with the well put on extended sales production meanwhile. Xstate holds 10%.

flow test result

The court ordered the three defendants to pay Xstate US$33,187,960 plus interest and its legal costs. Xstate has started enforcement overseas through Clifford Chance. The fourth defendant is not covered, and collecting the money is not assured.

regulatory community update

The WA Supreme Court awarded summary judgment to Xstate against three of the four investors in its claim over the unpaid A$25m subscriptions. The amount is not yet stated and written reasons are to follow. This resolves the 4 December hearing in Xstate's favour.

regulatory community update

The first, lowest zone in Dempsey 1-15 flowed dry gas to surface without water, but at rates sub-commercial at current gas prices. The zone is thin with poor reservoir quality on logs. Testing moves to the next zone up; Xstate holds 10%.

well test result

Xstate raised $752,378 (before costs) via 62.7m shares at 1.2c, a 17% discount to the 5-day average price. Funds go to its Dempsey 1-15 testing share, Alvares re-entry assessment and leasing. Shares on issue rise to about 783m.

capital raising announcement

Wireline logs on Dempsey 1-15 support gas-saturated sands matching the earlier shows, and a 5½-inch liner is cemented. Flow testing of multiple zones should start in 2-3 weeks. Commercial flow rates remain unproven; Xstate holds 10%.

well test result

Logs on Dempsey 1-15 confirm four interpreted gas-bearing sandstone zones between about 1,000m and 1,560m, with net pay of 30-50 feet. The operator expects the gas to cover well costs. Deeper targets are still to be drilled, so this is a first, shallow result for Xstate's 10%.

drilling result

Xstate announces Dempsey 1-15 is planned to spud on 1 August 2017 (California time), taking 30-40 days to reach about 3,200m. It targets over 1 Tcf unrisked gross (about 100 Bcf net to Xstate's 10%), and Xstate is funded for its US$0.44m share. This starts the key well.

drilling spud

Xstate raised $470,000 by placing 94m shares at 0.5c to sophisticated investors. Funds go partly to leasing extra acreage on trend with Dempsey, ahead of the late July spud. A small, funded raise, in contrast to the $25m placement that was never paid.

capital raising announcement

The LA Basin vendor has terminated the purchase agreement because the investors never paid. The US$625,000 deposit is lost, and the strategic acquisition is dead for now. Xstate will immediately sue the investors for damages, with counsel appointed in Australia and Singapore.

material agreement termination

Still no funds from the $25m raising, about 70% of which was meant for the LA Basin purchase. The vendor has given only two more weeks to settle. Xstate is starting legal action against the investors, including for the US$625,000 non-refundable deposit if the deal fails.

capital raising announcement

Xstate exercised its option to buy 10-30% interests from Sacgasco in five producing Sacramento Basin gas fields, including 30% of 13 wells for US$21,000. It assumes future well-plugging costs. Gross production after the deal is about 900 mcf per day.

asset acquisition disposition

Xstate says no funds have been received from the $25m raising, despite bank documents showing transfers. This contradicts the February report of A$19.3m remitted. The LA vendor has agreed to extend while the money is awaited.

capital raising announcement

Xstate and Sacgasco farm out a 10% interest in the Alvares gas discovery to Bombora, which funds 13.33% of the next well up to a US$10m cap. Xstate drops from 25% to 21%; Bombora also pays US$20,000 toward past lease rentals.

farm in farm out agreement

Investors have remitted about A$19.3m, 77% of the A$25m commitment; the balance is still delayed. The LA vendor has given Xstate extra time past the 17 February closing. No new closing date was stated.

capital raising announcement

Xstate requested a voluntary suspension of trading pending an announcement on its capital raising and US acquisition, expected by 21 February 2017. This comes as the investor funding is overdue and the 17 February closing date arrives.

other

The Asian investors are now in formal breach of their subscription agreements and have been issued breach notices. Maybank gave an irrevocable undertaking that the full A$25m will reach Australia by 15 February. Xstate still expects to close the LA deal on 17 February.

capital raising announcement

Xstate finished due diligence and signed a purchase agreement for a 24.5% interest in the Sansinena and East LA oil fields for US$13m. Closing moved to 17 February 2017, effective date to 1 January. Probable and possible reserves were cut 5-10%; proven unchanged.

asset acquisition disposition

Xstate signed binding letters of offer to raise $25m by placing about 658m shares at 3.8c with four Asian investors. That is 51.4% of the enlarged capital. Needs shareholder approval; 5% deposit due by 29 December, balance by 25 January 2017. Mainly funds the Los Angeles acquisition.

capital raising announcement

Xstate says the Sansinena deal has net 1P reserves of 6.2 MMboe and 2P of 9.9 MMboe, certified by NSAI, about US$2.10/bbl of 1P. Production is 500 bopd, targeted at over 1,100 bopd by close. Still subject to due diligence.

resource reserve update

Xstate signed a letter of intent to buy a 24.5% working interest in the Sansinena and East Los Angeles oil fields for US$13.0m, with about 450 bopd production. Subject to funding and due diligence, with financial close by 3 February 2017. Its first producing-asset deal since Sunset ended.

asset acquisition disposition

Xstate farms out up to 6% of its 30% interest in the Sacramento Basin AMI to Bombora Natural Energy, which funds up to A$400,000 of lease costs for a 20% interest across the partners. Xstate falls to 24% and gets up to A$120,000.

farm in farm out agreement

Xstate placed 300 million shares at 1.0c to raise $3.0m, the raising shareholders approved on 31 May. Sanston clients took it, reported as 3x oversubscribed. Funds are mainly for California acquisitions; due diligence on producing oil assets continues, none named.

capital raising announcement

Executive director Cosimo Damiano, ex-Mercuria, becomes Managing Director to pursue and fund the strategy of adding producing oil and gas assets. Chris Hodge, MD since 2014, stays as a non-executive director.

director officer appointment

Xstate walked away from the Sunset acquisition, citing risks it could not resolve in due diligence; Sunset refused an extension. Ends the deal announced 14 April, and Xstate says it is pursuing other producing-asset deals.

material agreement termination

Xstate signed a binding letter of intent to earn 50% to 87.5% working interests, as operator, in three California oil fields from Sunset Exploration, subject to 30 days of due diligence and 60 days to arrange funding. First step in its producing-asset strategy; resource potential of ~10 MMbbl is only a target.

asset acquisition disposition

Xstate raised $416,327: a $291,327 placement of 58.3m shares at 0.5c (25% of equity) plus a $125,000 convertible note at 0.5c, 8% coupon, 6 months, subject to shareholder approval. Funds go to due diligence on three US acquisitions. Priced above the 0.3c share purchase plan (SPP).

capital raising announcement

ASX queried Xstate's cash after the December quarter showed cash of $38,000, operating outflow of $148,000 and a forecast $80,000 outflow next quarter. Xstate must answer by 15 February or face possible suspension. Sharp drop from $220,000 at the May AGM.

listing compliance notice

December 2015 quarter: Porter Ranch leases (22.5%) were allowed to expire, Arnaudo leases were not renewed, and the SCU #1-24 water disposal project will be discontinued over new State licensing conditions. Focus narrows to Dempsey, Alvares and acquiring producing assets. Net gas 2,298 mcf.

quarterly activities report

Cosimo Damiano, formerly of Mercuria's upstream investments, joins as executive director on a small retainer plus day rate. His role is to find funding for a revised strategy of buying low-cost conventional producing oil and gas assets, alongside the Sacramento exploration portfolio.

director officer appointment

The share purchase plan raised $164,798, above the $150,000 target. Directors accepted oversubscriptions up to the maximum 54,932,510 shares. That is roughly 30% more shares on a base of about 180 million, so existing holders who did not take part are diluted.

capital raising announcement

Xstate offers a share purchase plan to raise up to $150,000 at $0.003 a share, a 32% discount to recent market price. Funds go to California interests, assessing new conventional producing assets, and working capital. Far smaller than earlier raisings; the price is well below the 4-10c option strikes.

capital raising announcement

Shareholders holding 5.42% requisitioned a general meeting to remove all current directors and appoint three new ones. The board is checking the notices' validity; a meeting must be called within 21 days and held within two months.

security holder rights change

AOC announced Cal LNG LLC, a US west coast LNG export and domestic supply venture: AOC 42%, Xstate 18%, private Blue Sky E&P 40%. Sites identified, negotiations ongoing. AOC says Dempsey and Alvares remain first priority.

joint venture update

Northern Gulf Petroleum has withdrawn from its funding commitments to AOC and so effectively from the heads of agreement to farm in to Dempsey and Alvares, per AOC. This ends the deal announced 19 days earlier; Xstate will pursue other interested parties.

material agreement termination

Xstate signed a heads of agreement for Northern Gulf Petroleum to fund the Dempsey (1 Tcf) and Alvares (2.4 Tcf) wells for a 50% interest in each, with drilling planned mid-2015. Carry is capped at US$4.6m and US$10m; Xstate would hold 12.5% post-drilling. Subject to due diligence.

farm in farm out agreement

Paul Cartwright resigned as Managing Director after about nine months; director Chris Hodge becomes MD, and Ian Tchacos, former Nexus Energy MD, joins as non-executive director. No reason for the resignation is given.

director officer appointment

Xstate placed 20m shares at 5c to raise $1.0m, settling 19 February. Funds go to extra 2D seismic and wider Sacramento Basin leasing. The price is above the 3c December placement.

capital raising announcement

The Bombora deal was cut back: Xstate will now buy 75.90% of Bombora for 12,892,084 shares instead of 100% for 16,984,583. The same Porter Ranch, water-disposal well and West Brentwood assets are included. Still needs shareholder approval.

asset acquisition disposition

Xstate placed 11m shares at 3c to raise $330,000 for working capital and to finish leasing over new prospects. Follows the cash balance of about $400k in September.

capital raising announcement

Xstate signed a binding heads of agreement to buy all of Bombora Energy for 16,984,583 shares, subject to Bombora holder and Xstate shareholder approval. Adds 22.5% of Porter Ranch oil leases, 10.94% of a water-disposal well and 6.67% more of West Brentwood. Revisits the Bombora name from its 2010 deal.

asset acquisition disposition

Gary Jeffery resigned as MD to run Australian Oil Company, the new alliance partner, though he remains Xstate's largest shareholder. Director Paul Cartwright becomes MD on $200k a year (half cash, half shares) plus 10.5m options, both subject to shareholder approval.

director officer appointment

Xstate signed a three-year Area of Mutual Interest agreement with Australian Oil Company (ASX: AOC) to share interests in new California joint venture opportunities. It formalises the relationship cited in the Good Oil presentation.

material agreement

Non-executive director and acting chairman Ross Kestel resigned on 3 September 2013. A replacement will be announced once appointed. The board is down to Gary Jeffery and Andrew Childs.

director officer appointment

Xstate bought a 10% interest in 7 producing Sacramento Basin gas wells for US$37,500, about 740 mcf/d gross, with access to 3D seismic over 375 sq km. Gross reserves are internally estimated at about 1.5 bcf. A first production asset after the Tunisian exit.

asset acquisition disposition

Sale of the Tunisian interests to Gulfsands completed after Tunisian approval, with the balance of cash received in full. A further US$500,000 bonus is possible on first production from the next Kerkouane well. Resolves the long-running pending second tranche.

asset acquisition disposition

Shea-Dividend #1-8 reached 5,200 feet but found the main reservoir sand eroded away and the secondary sand porous with gas shows but not productive. Well suspended for future use; the company points to updip potential and two other permitted locations.

drilling result

The Shea-Dividend #1-8 well at West Brentwood, California began drilling on 25 April 2013, targeting 1,220m vertical depth. Results expected within about 8 days. Xstate's share of dry-hole cost is US$175,000 for its 16.67% interest.

drilling spud

Xstate terminates the Blue Sky Langsa MOU (Indonesia) over timing, equipment and regulatory delays, and instead takes 16.667% of West Brentwood, California (first well spudding April) and 50% of Gulf of Mexico block HIA549. Funded by a 10m-share placement (US$175k) and 1m shares.

asset acquisition disposition

XState signed a non-binding MOU to buy 100% of Blue Sky Langsa, holding the Langsa offshore Sumatra oil fields (about 340 bopd), by issuing 459.6m shares, leaving BSL holders with 82%. It is subject to due diligence, a reserves report and shareholder approval; the US$25m workover program is unfunded.

asset acquisition disposition

Shareholders approved the sale of the Tunisian and Italian interests to Gulfsands and the agreements were signed. About US$890,000 is payable, US$250,000 immediately and the rest on regulatory approvals.

asset acquisition disposition

XState reached a preliminary agreement to sell its 10% Chorbane and 10% Kerkouane/Pantelleria interests to Gulfsands for US$875,000 cash at closing, plus a possible US$500,000 bonus on first production from the next Kerkouane well. Shareholder approval is required.

asset acquisition disposition

Tunisian authorities renewed the Chorbane exploration period for three years to 12 July 2015, with 20% of the area relinquished and a minimum of one well of at least 2,500m. XState holds 10%, resolving the July 2012 expiry thread.

regulatory community update

Chairman David Whitby resigned as a director to pursue private interests. His seat will not be replaced for now, in the interests of conserving financial resources.

director officer appointment

Sidi Dhaher-1 flow test failed: two zones flowed fluids, but none contained hydrocarbons, only mud filtrate, spent acid and probably formation water. The well will be plugged and abandoned. This ends the long-awaited test of the 10%-owned discovery.

well test result

ADX estimates mean contingent oil in place at Sidi Dhaher at 51 million barrels. This is oil in place, not recoverable oil, and depends on a successful flow test proving commercial rates. Test rig selection is being finalised.

resource reserve update

XState raised about $730,000 from a placement of about 11.5m shares at 6.3c, below the 10c-12.5c of earlier raisings. A share purchase plan at 6.3c, up to $945,000, is offered to existing holders. Funds go to its share of Sidi Dhaher testing costs and working capital.

capital raising announcement

XState says Sidi Dhaher-1 is complete and the rig released on 5 October, with a potential 30m light oil column at about 1,150m depth. It has now earned its 10% of Chorbane. A flow test is the next step; timing not set.

drilling result

Sidi Dhaher-1, drilled to 2,011m, found an interpreted oil column of about 30m in Upper Cretaceous rock, with oil recovered in sampling. A flow test is needed to confirm commercial rates. Well to be cased and suspended.

drilling result

ADX reported that Sidi Dhaher-1 spudded at 07:00 GMT on 27 August 2011 and was drilling 16-inch hole. The planned depth was 2,168m, with about 33 days expected to drill. XState holds 10%.

drilling spud

Interim report for six months to 30 June 2011. Directors decided to impair the carrying value of the Lambouka asset, viewing the existing well bore as unlikely to have significant value; the well bore remains available. Jeffery now paid $250,000 a year for 75% of his time. Other financials truncated.

half year report

Operator ADX says Tunisian authorities agreed a supervision schedule for Sidi Dhaher-1. Rig mobilisation is expected from 20 June and drilling could start early July. This resolves the safety hold-up; XState keeps 10%.

drilling scheduled

Tunisian authorities extended the Chorbane permit exploration period by one year to 12 July 2012 and say government supervision for Sidi Dhaher drilling will be provided. Site is ready; no mobilisation date yet.

regulatory community update

Chairman David Whitby's letter sets a goal for XState to become a significant gas producer, using existing infrastructure to reach European markets, via developing its three gas discoveries and exploration. Oil would be a bonus. A strategy statement, no new results.

other

ADX says the independent TRACS-AGR report puts Dougga mean recoverable contingent resources at 41 million barrels of liquids and 199 bcf sales gas. This firms up November 2010 estimates; an appraisal well is targeted early 2012. XState holds 10%, with option to 20%.

resource reserve update

XState raised $1.25m placing 10,000,000 shares at 12.5c to professional investors, with Argonaut as lead manager. Funds are for working capital, including testing Sidi Dhaher zones. Spud is now expected in early March 2011, another slip.

capital raising announcement

David Whitby, former Nido Petroleum CEO and chairman, joins as XState's new Chairman; John Begg stays as a director. The shareholders who requisitioned his removal withdrew the requisition, resolving the December governance dispute.

director officer appointment

Tunisia renewed the Kerkouane offshore licence for three years to 22 February 2014. Work commitments are a Lambouka well test and a well to at least 2,500m, plus relinquishing 772 km². XState holds 10% with its option to lift to 20% at Dougga intact.

regulatory community update

Shareholders holding about 10.82% have requisitioned a meeting to vote on removing Chairman John Begg. Directors are checking the requisition is valid before convening the meeting. A new governance dispute.

director officer appointment

XState expects the Sidi Dhaher well to spud around 28 January 2011, with rig choice narrowed to two. Cost is about US$6m over roughly 30 days, with a ~30% chance of success. This slips the earlier December 2010 target.

drilling scheduled

ADX remapping with 3D seismic lifts Dougga's inferred mean contingent resource to 234 bcf gas and 50 mmbbls condensate/LPG (89 mmboe), from 196 bcf and 42 mmbbls. XState holds 10% with an option to 20%. An appraisal well is planned for 2011.

resource reserve update

The entitlements issue drew applications for 20,112,161 shares; the 9,904,100-share shortfall will be placed by the underwriter. Holders took up about two-thirds of the roughly 30.0m shares offered at 10c.

capital raising announcement

XState launches a $3.0m entitlement issue: 4 new shares for every 5 held at 10c, with 1 free 24c option (to 30 June 2013) per 2 shares. Up to 30.0m shares are underwritten by Argonaut. It is meant to fund Sidi Daher drilling in December.

capital raising announcement

ADX's preliminary estimate for Lambouka is a mean recoverable 309 bcf of sales gas (P50 277 bcf), plus roughly 24 mmbbls condensate if Dougga's ratio applies. This is below the pre-drill 370 bcf success case. Reserves need a successful flow test; re-entry is planned alongside a possible 2011 Dougga appraisal well.

resource reserve update

Lambouka-1 reached 2,786m and ADX reports at least two hydrocarbon zones in the Abiod, likely gas and possibly condensate, with about 23m net pay. Fluid samples and pressure data could not be safely taken. The JV is weighing suspension or abandonment.

drilling result

Lambouka-1 hit the first target, the Birsa sandstone, at 1,635m, but logs show it is water bearing, which ADX calls disappointing. The deeper primary Abiod target is still to be drilled. XState holds 10%.

drilling result

With the Bombora acquisition complete, John Begg becomes non-executive chairman and Gary Jeffery managing director. David McArthur and Rhod Grivas resigned as directors; Kestel and Mitchell stay and McArthur remains secretary.

director officer appointment

Lambouka-1 was spudded on 11 July 2010 offshore Tunisia, about 3 days late due to anchor problems. XState, via Bombora, holds 10%; the well targets 3,000m, costs about US$22m and takes about 35 days.

drilling spud

Recompliance prospectus: offer of up to 5m shares at 20c (post-consolidation) to raise $1.0m, with one option per two shares. Also a $91,800 option entitlement issue and up to 15m placement options at 1c. All depend on the 10 June 2010 shareholder meeting.

capital raising announcement

XState agreed conditionally to buy 100% of unlisted Bombora Energy, which is earning 10% interests in Tunisian and Italian oil and gas permits, ending the search for a deal. It offers about 11.7m post-consolidation shares, a 1-for-3 consolidation and a $1.74m raising.

asset acquisition disposition

XState acquired a 25,000-sample Nevada surface geochemical database for 200,000 options at 8c on signing, plus 300,000 at 10c once the first claim is pegged. A first new direction after the Arizona uranium JV; a field trip is planned next quarter.

asset acquisition disposition

Half-year to 30 June 2008: net loss $2,938,162 (versus $266,371), mainly a $2,759,583 impairment of exploration expenditure. Cash was $3.27 million. The loss largely writes down the capitalised JV exploration spend rather than new cash spending. Text is truncated.

half year report

The JV determined XState has earned 50% of three uranium areas it can choose in Arizona. The earn-in agreement ends and a 50/50 contributing JV begins, releasing US$1.035 million (A$1.24 million) to XState, about US$40,000 of it for rehabilitation. Uncommitted cash is about A$3.25 million.

farm in farm out completion

XState and the Zeus vendors mutually agreed to drop the proposed Zeus acquisition announced on 25 June 2007. The Western Australian tenement deal will not proceed; no reason is given.

material agreement termination

XState signed a heads of agreement to buy 100% of Zeus Resources, holding 1 granted and 6 applied-for Western Australian tenements covering 3,654 km2, prospective for uranium and gold. This would add Australian ground beyond the Arizona JV; no price is given in the text provided.

asset acquisition disposition

The first two Elle JV holes (Elle and Hada targets) found no breccia pipe material, and downhole surveys and an airborne survey found no conductors. The Hermina hole was postponed. First-phase result is negative; partners will try other techniques.

drilling result

Liberty Star says the Elle JV started 15 December 2006 after XState transferred US$2.9 million, earning 50% of three breccia pipes. Planned work is 4,500 feet of rotary drilling and 32,160 feet of diamond drilling.

joint venture update

The prospectus raising closed oversubscribed on 30 November 2006 and the board accepted the $6.0 million maximum at 20 cents a share. The money funds the Arizona uranium JV, where XState sole funds US$2.9 million for 50%.

capital raising announcement

Prospectus lodged to raise up to $6 million via 30,000,000 shares at 20 cents, minimum $5 million. Funds will support the Arizona uranium joint venture with Liberty Star, where XState earns 50% by spending US$2.9 million.

capital raising announcement

Company signed a Liberty Star joint venture over Arizona uranium leases: a US$100,000 deposit paid, and it can earn 50% by committing US$2.9 million. This changes it from shell to uranium explorer, requiring a re-compliance prospectus raising at least 20 cents a share and a name change.

farm in farm out agreement

The dormant shell resolved to place 6,000,000 shares at 4 cents to raise $240,000 working capital, with a free option per share exercisable at 20 cents by 30 June 2007. Shareholder approval is needed because it exceeds 15% of capital.

capital raising announcement