Xstate Resources Limited Managing Director Andrew Bald talked with Proactive about the upcoming drilling of the Diona-1 conventional gas well in Queensland’s Surat-Bowen Basin.
Xstate recently signed a drilling contract with Easternwell Group Operations Pty Ltd, a subsidiary of Ventia Services Group Ltd, to carry out the work. Civil works at the site have now been completed, and Bald confirmed that the rig will be mobilised on 21 September, with drilling expected to commence by 26 September.
“We will know in 7 to 10 days from the start of drilling if we've got any high-pressure zones, if we see any hydrocarbons in the drilling, then the tender will be put on test,” Bald said.
The Diona-1 well will be drilled to a total depth of 2,600 metres, targeting the Showgrounds, Tinowan, and Walloon formations. The well is expected to cost around $2.70 million and is located within close proximity to the Roma to Brisbane pipeline.
Importantly, Bald noted that the pipeline owner IGT has already expressed interest in purchasing any gas the well produces.
Xstate holds a 51% working interest and operatorship of the Diona Block, with Elixir Energy Ltd retaining the remaining 49% under a farmout agreement.
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