Xstate Resources Limited Overview
Xstate Resources is a micro-cap Australian upstream oil and gas explorer that, after a decade as a passive holder of minority, non-operated interests in California, Alberta and Austria, re-invented itself in 2025 as a Queensland-focused, partly operator-led explorer of the Taroom Trough, Australia's most active onshore Permian gas fairway. Its core asset is a 51% working interest in the Diona sub-block of ATP 2077 (Elixir Energy 49%, operator), where the Diona-1 well, spudded within days of the company's September 2025 ASX reinstatement, intersected a 116 m gross over-pressured Permian gas column but has not yet established a sustained flow rate because stimulation fluid remains in the wellbore. In October 2026 it added a second leg — a 25% operated interest in the ~305 km² Block PLR2026-1-7 (now ATP 2087) on the eastern Taroom flank alongside Amplitude Energy. With roughly A$1 million of cash, no revenue, a going-concern qualification and a sub-A$10 million valuation, Xstate is a binary, catalyst-driven exploration vehicle.
Company's own description
In its FY2025 Annual Report, Xstate describes itself as primarily involved in oil and natural gas exploration and production, and states that over the year it divested its remaining overseas assets in Austria and California because those minority positions generated insufficient cash flow and were a continuing drain on reserves. By the end of FY2025 the group held only exploration and evaluation interests in onshore oil and gas projects (FY2025 AR, Note 1). The October 2026 investor presentation reframes the company as focused on its Taroom Trough projects in Queensland, holding 51% of the Diona block in ATP 2077 and serving as operator and equal 25% partner in ATP 2087.
Independent characterisation
Xstate is best understood as a listed exploration option rather than an operating business. It has:
No revenue-generating operations: Since the Austrian (June 2025) and Californian (December 2025) disposals, the group has had no production income. Its only P&L inflows in H1 2026 were interest income (A$35,949) (H1 2026 Interim).
A single asset in the evaluation phase: (Diona, ATP 2077, carrying value A$7.50m at 30 Jun 2026) and a second permit at preferred-tenderer stage (ATP 2087, not yet granted).
An asset-light, consultant-based operating model: The company has no employees beyond directors; technical work is outsourced to JJM Consultancy (engineering, well design, decommissioning estimates) and senior geoscience consultants (Oct 2026 presentation).
A newly developed "consortium-builder" capability: In May 2026 Xstate organised and managed a Joint Study Group of energy companies to identify and bid for acreage; participants paid Xstate A$399,999 in non-refundable contributions, which are carried as a liability until a block is awarded (H1 2026 Interim, Notes 2 and 13). That group's bid became the Taroom JV that won PLR2026-1-7.
Business model and revenue model
| Dimension | Current state (Oct 2026) | Prior state (2019–2024) |
|---|---|---|
| Revenue model | None — pre-revenue. Prospective model is sale of natural gas and condensate from Diona into the nearby OGT-owned pipeline under a future gas sales contract | Minority working-interest share of oil sales (Alberta, Austria) and small gas sales (California) |
| Product vs service mix | 100% prospective commodity (gas/condensate/potentially oil) | 100% commodity |
| Other income | Interest; Joint Study Group management fees (deferred as liability) | Interest; asset-sale gains |
| Operatorship | Operator of ATP 2087 JV (initial); operated Diona-1 drilling (Sep–Oct 2025), operatorship then reverted to Elixir | Non-operator throughout |
| Funding model | Serial equity placements with free-attaching options | Mix of production cash flow and equity |
Value chain position
Xstate sits at the very upstream end of the gas value chain — acreage acquisition, geological evaluation, exploration drilling and appraisal testing. It has no midstream (processing, pipeline) or downstream exposure. Its stated commercialisation pathway is a short above-ground connection from the Diona-1 pad to a valve on an OGT-owned pipeline roughly 1 km west of the well, if a commercial flow rate is established (June 2026 Quarterly).
Customer types and end-markets
No customers exist today. The prospective end-market is the east-coast Australian gas market (Queensland domestic and LNG-linked demand), accessed via existing Surat-Bowen pipeline infrastructure. The ATP 2087 presentation emphasises proximity to multiple pipelines and to APLNG's Condabri coal-bed methane facilities (Oct 2026 presentation).
Strategy
Stated strategy themes
From the FY2025 Annual Report and 2026 communications, management's strategy can be summarised in the following themes (paraphrased):
-
Concentrate on Queensland and exit non-operated minority positions. The MD's report frames 2025 as transformational, completing the divestment programme to focus on Diona (FY2025 AR).
-
Be an operator, not a passenger. Diona-1 was the company's first operated well, cited by the Chairman as demonstrating operator capability; Xstate is initial operator of ATP 2087.
-
Fast commercialisation via existing infrastructure. Both permits are located near pipelines; management stresses there is no need to wait for new pipelines (Oct 2026 presentation).
-
Expand Taroom Trough exposure on both flanks. ATP 2087 gives exposure to the eastern margin, complementing Diona on the western margin.
-
Leverage consortium-building. The company assembled and led the 2026 Queensland JV Study Group and the winning PLR2026-1-7 bid.
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Near-term focus (H1 2026 Interim): select and implement a preferred workover option to complete Diona-1 testing, evaluate results, and continue assessing portfolio expansion.
Initiatives register (last 24 months)
| Initiative | Date | Description | Status | Source |
|---|---|---|---|---|
| Portfolio rationalisation | Feb–Dec 2025 | Exit Canada, Austria, USA | Completed | FY2025 AR |
| ASX re-compliance and relisting | Jun–Sep 2025 | Prospectus, A$2.144m raise, 2.23:1 consolidation | Completed | FY2025 AR |
| Diona farm-in and Diona-1 drilling | Apr–Oct 2025 | Fully funded well for 51% | Drilled; discovery | FY2025 AR |
| Diona appraisal funding | Oct–Dec 2025 | A$3.82m two-tranche placement | Completed | FY2025 AR |
| Diona stimulation and testing | Apr–May 2026 | Two-stage frac; flowback | Incomplete; suspended | June 2026 Quarterly |
| Joint Study Group | May 2026 | Consortium to identify/acquire acreage; A$399,999 contributions | Led to PLR2026-1-7 award | H1 2026 Interim |
| ATP 2087 bid | Mar–Oct 2026 | Preferred tenderer, 25% operated | Awaiting grant | ASX 2 & 13 Oct 2026 |
| Artificial lift / workover review | Jun–Oct 2026 | JJM Consultancy options review; static gradient survey Sep 2026 | Under review by operator | June 2026 Quarterly; ASX 16 Sep 2026 |
Guidance and targets
| Expectation | Stated in | Outcome |
|---|---|---|
| Initial flow results in early April 2026; possible gas sales contract during FY2026 | FY2025 AR (Mar 2026) | Testing began late April; no sustained rate established |
| Could be on production and selling gas before end-June 2026 | FY2025 AR | Not achieved |
| "Next 12 months is going to be very exciting" | MD, Oct 2026 | Qualitative only |
The company does not issue financial guidance. Operational expectations stated over time have repeatedly slipped:
Sustainability/ESG commitments, cost-reduction programmes with numerical targets, and medium-term financial targets are not publicly disclosed.
Products & Services
For an exploration company, the "product portfolio" is its petroleum tenement and prospect inventory. Each asset is catalogued below.
Diona sub-block, ATP 2077 (Surat-Bowen Basin, SW Queensland) — 51% WI
| Attribute | Detail | Source |
|---|---|---|
| Interest | 51% WI in the Diona sub-block (largest block in ATP 2077); Elixir Energy 49% and operator; Elixir holds 100% of Blocks A and B | June 2026 Quarterly; H1 2026 Interim Note 7 |
| Operatorship | Xstate operated Diona-1 drilling; operatorship reverted to Elixir after rig release. Some third-party articles (e.g., Discovery Alert, Oct 2026) still describe Xstate as operator — inconsistent with company filings | FY2025 AR Note 3; Proactive |
| Acquisition terms | 51% earned by fully funding Diona-1 (pre-drill cost estimate ~A$2.7m); A$250,000 capitalised as acquisition of rights | Proactive; FY2025 AR Note 16 |
| Pre-drill targets | Showgrounds, Tinowon and Wallabella reservoirs; 55% chance of geological success; 12.5 Bscfe gross unrisked mean prospective resource | Proactive (Sep 2025) |
| Well | Diona-1 vertical well, TD 2,479 m; Showgrounds dry; hydrocarbons in Bandanna/Black Alley, Tinowon, Wallabella | FY2025 AR |
| Pay | 116 m gross interval with gas shows; 23 m net pay over three Permian zones (wireline table shows 86 m gross where logged) | FY2025 AR Table 1 |
| Porosity | Max 11–14%, average ~8–11% by zone | FY2025 AR Table 1 |
| Pressure | Downhole 4,139 psi at 2,411 m TVD (0.52 psi/ft); wellhead 3,235 psi (Sep 2026 SGS) | ASX 16 Sep 2026 |
| Stimulation | Two-stage frac (Apr 2026) limited to upper Tinowon, Black Alley and Bandanna formations; ~6,400 bbl completion fluid, ~45% recovered | June 2026 Quarterly |
| Flow status | Gas and condensate flowed to surface and flared; no sustained flow rate established; well shut in pending artificial-lift/workover solution | H1 2026 Interim |
| Remaining test cost | A$0.5–0.8m gross; A$255–408k net to Xstate | H1 2026 Interim Note 18 |
| Commercial route | Above-ground tie-in to OGT-owned pipeline ~1 km west | June 2026 Quarterly |
| Play interpretation | Basin Centred Gas (BCG), extending the western boundary of the Taroom Trough play; analogue Waggamba field (OGT, ~10 km east/downdip) | Petroleum Australia; Oct 2026 presentation |
| Parameter | P90 (1U) | P50 (2U) | P10 (3U) | Mean |
|---|---|---|---|---|
| Area (km²) | 28 | 60 | 129 | 72 |
| Net pay (m) | 14 | 23 | 33 | 23 |
| Gross recoverable gas (Bscf) | 44 | 107 | 266 | 138 |
| Gross recoverable condensate (MMstb) | 2.4 | 7.0 | 20.2 | 9.9 |
| Gross gas equivalent (Bscfe) | 62 | 154 | 377 | 197 |
| Net to Xstate gas (Bscf, 51%) | 22.4 | 54.6 | 135.7 | 70.4 |
| Net to Xstate condensate (MMstb) | 1.2 | 3.6 | 10.3 | 5.0 |
| Net to Xstate gas equivalent (Bscfe) | 31.6 | 78.5 | 192.3 | 100.5 |
Diona prospective resources (internal, unrisked, PRMS 2018) — FY2025 Annual Report Table 2
Note: The FY2025 AR narrative at one point labels 197 Bscfe as the "P10" estimate, while the table shows 197 Bscfe as the mean and 377 Bscfe as P10. The table is treated as authoritative. These are internal estimates reviewed by director Greg Channon, not independently certified; the May 2026 discovery release said the JV was seeking independent contingent resource certification (InvestSMART summary).
ATP 2087 (formerly PLR2026-1-7), eastern Taroom Trough — 25% WI, initial Operator (preferred tenderer)
| Attribute | Detail | Source |
|---|---|---|
| Status | Preferred tenderer under Queensland PLR2026-1 round; grant subject to Native Title process and Environmental Authority lodgement | Discovery Alert 2 Oct 2026; ASX 13 Oct 2026 |
| Area | ~305 km², between Condamine and Miles, Western Downs | Discovery Alert |
| Partners | Xstate, Amplitude Energy, Betaloo/"Beetaloo" Energy, Eastern States Energy — 25% each (spelling differs between sources) | ASX 13 Oct 2026; Discovery Alert |
| Play | Stacked over-pressured Permian BCG with liquids/light oil upside; also CSG potential to be investigated | ASX 13 Oct 2026 |
| Analogues | Adjacent and along-trend from Omega Oil & Gas's Canyon project (Canyon-1H normalised 987 bopd + 1.45 MMscf/d); 300–2,200 m up-dip of QGC's Fantome-1 (2012, flowed gas from three comingled Permian zones) | ASX 13 Oct 2026 |
| Infrastructure | Multiple gas pipelines transect the permit; immediately west of APLNG's Condabri CBM field | ASX 13 Oct 2026 |
| Initial work commitment | Seismic processing and early geological and geophysical work; specific dollar commitment not publicly disclosed | Discovery Alert |
| Bid round | Opened 5 Mar 2026, closed 14 May 2026; more than 20 bidders; four Taroom blocks awarded to JVs led by QGC, Denison/OGT, Omega and Xstate | ASX 13 Oct 2026 |
Discontinued / disposed portfolio (for completeness)
| Asset | Location | Interest held | Disposal date | Consideration | Source |
|---|---|---|---|---|---|
| Anshof field & 3,000 bopd facility | Upper Austria | 20% WI | 4 Jun 2025 (eff. 31 Mar 2025) | €547,075 offset against cash calls | FY2025 AR Note 9(c) |
| Sacramento Basin leases (incl. Rancho Capay, Malton, East Rice Creek, Los Medanos, Dutch Slough, Dempsey/Borba, Alvares) | California, USA | 10%–33% WIs | 11–12 Dec 2025 (eff. 1 Jul 2025) | US$95,103 cash-call forgiveness | FY2025 AR Note 9(a); SmallCaps |
| Crest Jinn | Alberta, Canada | 25% WI | 5 Feb 2025 (eff. 1 Jan 2025) | 3% overriding royalty | FY2025 AR Note 9(b) |
| Red Earth (six oilfields) / Alberta Plains | Alberta, Canada | 25% / 35% WI | FY2024 (Red Earth per tax note) | A$4.12m cash received in FY2024 (investing inflow) | FY2025 AR; H1 2026 Note 15 |
| King Brown gold tenement | Australia | 12% | — | — | Yahoo profile |
Retained royalty
The 3% overriding royalty over the Crest Jinn operating area (Alberta) is the company's only residual non-Australian economic interest. Its value and any receipts are not separately disclosed.
Financial Narrative
Five-year summary (company-disclosed)
Source: FY2025 Annual Report, Remuneration Report section 14(c). Discrepancies: FY2024 basic EPS is 0.84 in this table versus 0.82 in the FY2025 income statement; FY2025 EPS of -0.96 is the continuing-operations figure (total -0.93). FY2025 NTA of A$2.245m is materially below reported net assets of A$7.19m; the company does not explain the basis, which may exclude capitalised exploration — flagged as unexplained.
Income statement (A$)
Sources: FY2025 AR income statement; H1 2026 Interim income statement. FY2021–FY2023 detailed line items not publicly disclosed in sources reviewed. Note that FY2025 "other expenses", "other gains/losses" and FX lines (-33,842; -12,147; +33,707) are omitted for brevity but included in totals.
Group production revenue including discontinued operations (A$)
Source: FY2025 AR Notes 9 and 10; analyst aggregation. Revenue CAGR is not meaningful (group moved from ~A$0.79m to nil continuing revenue).
Margins and derived profitability (analyst calculations)
Commentary: Continuing-operations corporate cost more than doubled in FY2025 (pre-tax loss A$1.84m vs A$0.98m), driven by professional fees (A$796k vs A$253k) associated with the ASX re-compliance (including BDO Corporate Finance's investigating accountant's report, A$28,840 in non-audit fees), administrative costs and A$126k of share-based consultant payments. The FY2024 profit was entirely a function of the Canadian asset-sale gain (A$3.22m) rather than operating performance. H1 2026 run-rate corporate burn of ~A$0.8m per half (~A$1.6m annualised) is the key number for liquidity analysis.
Balance sheet (A$)
Sources: FY2025 AR balance sheet and statement of changes in equity (FY2023 equity and accumulated losses from 1 Jan 2024 opening balance; FY2023 cash from 1 Jan 2024 cash-flow opening); H1 2026 Interim. Debt split: no short-term or long-term borrowings at any reported date (FY2024 included a A$4,886 repayment of borrowings).
Commentary: The balance sheet has been transformed from a legacy-liability structure (Canadian abandonment provisions of ~A$10.1m at the start of FY2024) to a clean exploration balance sheet whose single material asset is the Diona E&E capitalisation (A$7.50m, 83% of total assets at 30 Jun 2026). Accumulated losses of A$57.5m against contributed equity of A$64.9m illustrate the long history of capital consumption. The company noted at 30 Jun 2026 that its market capitalisation was below net assets, which it treated as an impairment indicator, but concluded no impairment was required (H1 2026 Interim Note 7).
Cash flow (A$)
Sources: FY2025 AR cash flow statement; H1 2026 Interim cash flow statement. H1 2026 operating cash flow was near-neutral because of A$302k of Joint Study Group receipts and A$336k of GST refunds (H1 2026 Interim).
Quarterly cash detail (Appendix 5B, A$'000): June 2026 quarter: operating inflow +33, exploration investing −2,792, financing +1,528, closing cash 1,248; the 5B calculated 0.45 quarters of funding at the historical burn, which management said overstates forward spend because Diona activity would be significantly lower (June 2026 Quarterly). The company later reported ~A$0.9m of cash plus receivables at 30 Sep 2026 (Oct 2026 presentation).
Ratios (analyst calculations from reported figures)
H1 2026 ROE/ROA are half-year (not annualised) figures: Trend commentary: The financial trajectory has three phases. FY2021–FY2022 saw sustained losses (A$4.5m and A$3.4m comprehensive losses) as the Alberta/California/Austria portfolio failed to self-fund. FY2023–FY2024 posted accounting profits primarily from asset-sale gains and the release of liabilities as the company retreated from Canada. FY2025 onwards is a classic exploration-funding cycle: equity raised (A$5.94m FY2025, A$1.71m H1 2026) is converted into capitalised E&E (A$4.4m and A$3.2m), with corporate costs of ~A$1.6–1.8m a year. Both the FY2025 audit report and the H1 2026 review report contain a material-uncertainty paragraph regarding going concern.
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Segments Reported by Period
| Period | Segments reported | Source |
|---|---|---|
FY2024 | Corporate; Oil & gas exploration USA; Oil production Canada; Oil production Austria | FY2025 AR Note 10 (FY2024 comparative) |
FY2025 | Single segment (onshore Australia exploration); all prior segments discontinued | FY2025 AR Note 10 |
H1 2026 | Single segment (onshore Australia exploration & appraisal) | H1 2026 Interim Note 6 |
Segment Revenue
| Metric (A$, FY2024) | Corporate | Oil & gas exploration USA | Oil production Canada | Oil production Austria | Total |
|---|---|---|---|---|---|
Revenue from external customers | 0 | 0 | 171,367 | 587,893 | 759,260 |
Other income | 0 | 30,489 | 0 | 0 | 30,489 |
Profit/(loss) before tax | -982,965 | -164,707 | 2,575,562 | -88,293 | 1,339,597 |
Profit/(loss) after tax | -982,965 | -164,707 | 2,400,518 | -68,761 | 1,184,085 |
Total assets | 924,371 | 1,239 | 2,836,895 | 781,408 | 4,526,355 |
Total liabilities | -150,986 | -176,277 | -102,378 | -712,220 | -1,124,303 |
Segment revenue (AUD)
| Segment revenue (AUD) | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Oil production Austria (discontinued) | 587,893 | 138,677 | 0 |
Oil production Canada (discontinued) | 171,367 | 0 | 0 |
Gas exploration/production USA (discontinued, other income) | 30,489 | 13,461 | 0 |
Onshore Australia exploration (continuing) | 0 | 0 | 0 |
Group Entities
| Entity | Jurisdiction | Interest | Role |
|---|---|---|---|
Xstate Resources Limited | Australia | Parent | Listed holding company |
Xstate Diona Ops Pty Ltd | Australia | 100% | Holds capitalised Diona E&E expenditure |
Xstate Diona Pty Ltd | Australia | 100% | Holds acquired exploration expenditure and site restoration provision |
XST Taroom Pty Limited | Australia | 100% | Incorporated for future operations (likely ATP 2087 vehicle) |
Xstate Energy Ltd | Canada | 100% | Legacy entity after Crest Jinn disposal; holds CAD tax receivable |
Xstate USA Corp (and XGAS LLC, CALX SELA LLC) | USA | Disposed 12 Dec 2025 | Sold to Australian Oil Company |
Key Financials (AUD) and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total comprehensive income (AUD) | -4,493,191 | -3,414,981 | 1,426,696 | 1,205,122 | -1,835,280 |
Basic EPS (A cents, consolidation-adjusted) | -3.12 | -2.37 | 0.99 | 0.84 | -0.96 |
Year-end share price (A cents, adjusted) | 8.92 | 4.46 | 2.90 | 2.0 | 1.8 |
Market capitalisation (AUD) | 12,860,727 | 6,430,363 | 4,179,748 | 2,893,672 | 7,716,255 |
Net tangible assets (AUD) | 3,802,235 | 353,332 | 2,168,193 | 3,272,924 | 2,245,000 |
NTA backing (A cents per share) | 2.64 | 0.25 | 1.50 | 2.27 | 0.52 |
Dividends per share (A cents) | 0 | 0 | 0 | 0 | 0 |
Income Statement (AUD) and Per-Share Data
| Line item (AUD) | FY2024 (reclassified) | FY2025 | H1 2025 | H1 2026 |
|---|---|---|---|---|
Revenue from contracts with customers (continuing) | 0 | 0 | 0 | 0 |
Interest income | 40,887 | 72,868 | 47,805 | 35,949 |
Other income | 0 | 0 | 16,246 | 0 |
Personnel expenses | -212,592 | -338,114 | -148,194 | -177,497 |
Share-based payments (separately disclosed) | 0 | 0 | 0 | -54,530 |
Professional fees | -253,236 | -796,105 | -166,355 | -350,581 |
Administrative expenses | -86,341 | -350,889 | -216,872 | -135,696 |
Business development | -408,774 | -291,627 | 0 | -70,305 |
Exploration expenditure expensed | 0 | 0 | -189,874 | -27,510 |
Finance expenses | -2,055 | -122,150 | -656 | -4,554 |
Loss before tax, continuing | -982,965 | -1,838,299 | -626,606 | -788,106 |
Profit/(loss) from discontinued operations | 2,167,050 | 69,139 | -148,582 | 0 |
Net profit/(loss) | 1,184,085 | -1,769,160 | -775,188 | -788,106 |
Total comprehensive income/(loss) | 1,205,122 | -1,835,280 | -771,934 | -799,246 |
Basic EPS, total (A cents) | 0.82 | -0.93 | -0.54 | -0.18 |
Weighted average shares (m, post-consolidation) | 144.18 | 190.53 | 144.18 | 448.27 |
Income Statement (AUD)
| Metric | FY2024 | FY2025 |
|---|---|---|
Group production/other operating income incl. discontinued (AUD) | 789,749 | 152,138 |
of which Austria oil (AUD) | 587,893 | 138,677 |
of which Canada oil (AUD) | 171,367 | 0 |
of which California gas, other income (AUD) | 30,489 | 13,461 |
Financial Analysis
| Metric | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
EBITDA, continuing ops (A$, analyst-derived: pre-tax loss + finance expense − interest income; no D&A in continuing ops) | -1,021,797 | -1,789,017 | -819,501 |
Gross / operating / EBITDA / net margin | Not meaningful — no continuing revenue | Not meaningful | Not meaningful |
Effective tax rate (%) | 0 | 0 | 0 |
Balance Sheet (AUD)
| Line item (AUD) | FY2023 (31 Dec 2023) | FY2024 (31 Dec 2024) | FY2025 (31 Dec 2025) | H1 2026 (30 Jun 2026) |
|---|---|---|---|---|
Cash and cash equivalents | 995,260 | 3,555,128 | 2,914,236 | 1,248,217 |
Total current assets | — | 3,653,748 | 3,450,669 | 1,566,598 |
Oil and gas assets (production) | — | 781,408 | 0 | 0 |
Exploration and evaluation assets | — | 0 | 4,551,365 | 7,503,648 |
Total assets | — | 4,526,355 | 8,012,149 | 9,081,480 |
Total current liabilities | — | 979,502 | 645,694 | 914,971 |
Site restoration provision | — | 144,801 | 177,362 | 181,916 |
Total liabilities | — | 1,124,303 | 823,056 | 1,096,887 |
Total borrowings (short + long) | 0 | 0 | 0 | 0 |
Net debt / (net cash) | -995,260 | -3,555,128 | -2,914,236 | -1,248,217 |
Total equity | 2,196,930 | 3,402,052 | 7,189,093 | 7,984,593 |
Goodwill and intangibles | 0 | 0 | 0 | 0 |
Working capital | — | 2,674,246 | 2,804,975 | 651,627 |
Accumulated losses | -56,499,721 | -55,047,678 | -56,816,838 | -57,533,553 |
“—” = not publicly disclosed.
Cash Flow (AUD)
| Line item (AUD) | FY2024 | FY2025 | H1 2025 | H1 2026 |
|---|---|---|---|---|
Net operating cash flow | -1,587,347 | -1,740,506 | -934,649 | -25,512 |
Capitalised exploration (capex) | 0 | -4,400,597 | 0 | -3,197,092 |
Proceeds from asset divestment | 4,117,292 | 0 | 0 | 0 |
Net investing cash flow | 4,117,292 | -4,401,226 | 0 | -3,198,212 |
Gross equity raised | 0 | 5,944,108 | 0 | 1,713,491 |
Capital raising costs | 0 | -404,905 | -126,916 | -149,784 |
Net financing cash flow | -4,886 | 5,539,203 | -126,916 | 1,563,707 |
Free cash flow (OCF − capex, analyst) | -1,587,347 | -6,141,103 | -934,649 | -3,222,604 |
Dividends paid | 0 | 0 | 0 | 0 |
Share buybacks | 0 | 0 | 0 | 0 |
Net change in cash | 2,525,059 | -602,529 | -1,061,565 | -1,660,017 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
ROE (%, net profit / average equity) | 42.3 | -33.4 | -10.4 |
ROA (%, net profit / average assets) | not computable | -28.2 | -9.2 |
ROIC | Not meaningful (no invested debt; exploration stage) | Not meaningful | Not meaningful |
Current ratio (x) | 3.73 | 5.34 | 1.71 |
Debt / equity (x) | 0 | 0 | 0 |
Net debt / EBITDA (x) | Not meaningful (net cash, negative EBITDA) | Not meaningful | Not meaningful |
Asset turnover | Not meaningful (no continuing revenue) | Not meaningful | Not meaningful |
Region revenue (AUD)
| Region revenue (AUD) | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Europe (Austria) | 587,893 | 138,677 | 0 |
North America — Canada | 171,367 | 0 | 0 |
North America — USA (other income) | 30,489 | 13,461 | 0 |
Australia | 0 | 0 | 0 |
Region Overview
| Region | FY2024→FY2025 change (%) | Driver |
|---|---|---|
Austria | -76.4 | Only Q1 2025 production retained (effective date 31 Mar 2025); interest assigned to ADX/Kathari |
Canada | -100 | Crest Jinn sold effective 1 Jan 2025; Red Earth sold in FY2024 |
USA | -55.8 | Declining Sacramento Basin gas output (~14.6 mcf/d net at disposal), disposed Dec 2025 |
Australia | Not meaningful | Pre-revenue; all activity capitalised |
Per-Share Data and Valuation Multiples (AUD)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Year-end share price (A cents, consolidation-adjusted) | 8.92 | 4.46 | 2.90 | 2.0 | 1.8 |
Year-end market capitalisation (AUD) | 12,860,727 | 6,430,363 | 4,179,748 | 2,893,672 | 7,716,255 |
Shares on issue at year end (m, post-consolidation basis) | — | — | 144.18 | 144.18 | 428.68 |
“—” = not publicly disclosed.
Capital Markets
| Item | Value | Source |
|---|---|---|
Price at April 2026 placement | A$0.033 | H1 2026 Interim; Stockopedia |
Price on 18 May 2026 (discovery release) | A$0.033 at release; −12.1% on day | InvestSMART; Stocklight |
Price ~late June 2026 | A$0.013 | InvestSMART |
ASX close 7 Oct 2026 | A$0.0121 | Oct 2026 presentation |
52-week range (as reported by SmallCaps, Oct 2026) | A$0.009 – A$0.072 | SmallCaps |
Approximate 1-year performance (Oct 2025 → Oct 2026) | Down materially; reinstated at A$0.02 offer price in Sep 2025 vs ~A$0.012–0.015 in Oct 2026 (≈ −25% to −40%) | Analyst calculation from FY2025 AR and presentation |
Approximate 3-year performance (YE2023 2.90c → ~1.2–1.5c) | ≈ −50% to −60% | Analyst calculation |
Approximate 5-year performance (YE2021 8.92c → ~1.2–1.5c) | ≈ −83% to −87% | Analyst calculation |
Valuation Multiples
| Multiple | XST | Comment |
|---|---|---|
P/E | Not meaningful (loss-making) | Some aggregators still show a stale trailing P/E of ~4x based on FY2023/FY2024 asset-sale profits — misleading |
EV/EBITDA | Not meaningful (negative EBITDA) | — |
EV/Sales | Not meaningful (no revenue) | — |
P/B | ~0.64x (A$5.1m market cap / A$7.98m net assets at 30 Jun 2026) | Analyst calculation; uses company's ~430m share count — on 479.9m shares the market cap is ~A$5.8m and P/B ~0.73x |
Enterprise value | ~A$4.2–4.9m (market cap less ~A$0.9m cash plus receivables) | Analyst calculation |
EV per net mean prospective Bscfe | ~A$0.04–0.05m per Bscfe (≈A$0.04–0.05 per mcfe) | Analyst calculation on 100.5 Bscfe; prospective resources are unrisked and should not be equated with reserves |
Capital Markets — Analyst consensus
| Item | Status |
|---|---|
Analyst consensus | None — no sell-side coverage identified |
Dividend history and policy | No dividends paid FY2021–H1 2026; none expected in exploration phase |
Credit ratings (Moody's / S&P / Fitch) | Not rated |
Debt maturity profile | Not applicable — nil debt, no facilities (Appendix 5B section 7) |
Series Details
| Series | Number | Exercise price (AUD) | Expiry |
|---|---|---|---|
Broker options (Sep 2025) | 16,440,000 | 0.04 | 5 Mar 2027 |
Free-attaching placement options (Nov–Dec 2025) | 86,899,966 | 0.04 | 17 Dec 2029 |
Consultant options (Dec 2025) | 9,000,000 | 0.04 | 17 Dec 2029 |
Broker options (Apr 2026) | 12,803,030 | 0.06 | 30 Apr 2029 |
Free-attaching placement options (Jun 2026) | 17,070,707 | 0.06 | 30 Apr 2029 |
Consultant options (Jun 2026) | 6,000,000 | 0.04 | 10 Mar 2029 |
Total options | 148213703 | — | — |
Director performance rights | 22,500,000 | Nil (price hurdles A$0.04/A$0.06) | — |
Analyst Conclusions
Management guidance
Management provides no financial guidance. The H1 2026 Interim states the near-term priority is selecting and implementing a workover option to complete Diona-1 testing, while continuing to assess portfolio expansion. The October 2026 presentation states that logistics and timing of continued testing remain under review and that the next 12 months will be "very exciting" (MD comment).
Consensus
No consensus estimates exist.
Bull case
-
Pressure says the reservoir is real. A 4,139 psi downhole reading, gas-filled wellbore and recharge after shut-in suggest the constraint is mechanical (fluid column), not geological; a modest A$255–408k net workover could unlock a sustained rate and a near-pipeline gas sale (ASX 16 Sep 2026; H1 2026 Interim).
-
Asymmetric valuation. At an EV of roughly A$4–5m against an internal 100.5 Bscfe net mean prospective resource and a second Taroom permit with established partners, any certified contingent resource or commercial flow rate could re-rate the stock several-fold.
-
Regional momentum. Omega's Canyon results, OGT's Waggamba oil-bearing horizontals and Shell/QGC activity validate both flanks of the Taroom Trough, and the JV structure at ATP 2087 spreads early costs four ways.
Bear case
-
Funding gap. With ~A$0.9m of cash plus receivables at 30 Sep 2026 and annualised corporate costs of ~A$1.6m, another dilutive raise is close to certain before meaningful new data; the April 2026 raise at A$0.033 has already been followed by a ~60% price decline.
-
BCG economics are unproven at Diona. Low permeability and poor load recovery may mean commercial rates require horizontal multistage completions costing far more than Xstate's market value; a vertical well with an incomplete test is weak evidence of commerciality.
-
Execution credibility and control. Repeated timetable slippage (production by mid-2026 not achieved), a 2.7x well-budget overrun, loss of operatorship at Diona, and material related-party payments weaken confidence in capital stewardship.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing | Why it matters |
|---|---|---|
| JV selection of artificial-lift/workover option and resumption of Diona-1 testing | Not scheduled ("under review") | Determines whether a sustained flow rate exists |
| Independent contingent resource certification for Diona | Not scheduled | Converts internal estimates into market-credible resources |
| ATP 2087 formal grant (Native Title, EA) | Not scheduled | Secures second asset |
| September 2026 quarterly report and Appendix 5B | Due by 31 Oct 2026 | Liquidity runway |
| Next capital raising (size, price, partner involvement) | Likely within 6 months | Dilution and investor appetite |
| Omega Canyon testing results | 1H 2027 | Read-through to ATP 2087 |
| FY2026 Annual Report and audit opinion | By 31 Mar 2027 | Going-concern status; E&E impairment test |
| Any farm-down of Diona | Unconfirmed | Funding without dilution |
| Clarification of board chair role | Next governance statement | Governance hygiene |
Analyst verdict
Xstate Resources has completed a genuine strategic transformation in eighteen months: it shed loss-making, non-operated North American and Austrian interests, cleaned up roughly A$10 million of legacy abandonment liabilities, relisted on the ASX, drilled its first operated well within days of reinstatement and, by October 2026, secured an operated position on the opposite flank of the Taroom Trough alongside credible partners. The Diona-1 well has demonstrated a thick, over-pressured Permian gas column, and the September 2026 static gradient survey supports management's argument that the testing failure was mechanical rather than geological.
However, the investment case remains binary and under-funded. Diona-1 has not yet produced a sustained flow rate; the resource numbers that underpin the bull case are internal, unrisked prospective estimates reviewed by a director rather than independently certified contingent resources; operational control has reverted to Elixir, whose priorities lie elsewhere; and Xstate entered the fourth quarter of 2026 with under A$1 million of liquidity, a going-concern qualification and an options overhang equal to more than a third of its issued capital. The well cost the company roughly 2.7 times its prospectus budget, and the market's reaction to the May 2026 "discovery" announcement — a double-digit share-price fall — shows that investors are discounting management's framing.
For institutional purposes, Xstate is uninvestable on liquidity and scale grounds and should be viewed as a high-risk exploration option. The stock's next re-rating, in either direction, hinges on two events: a funded, completed Diona-1 flow test that establishes a sustained rate, and the formal grant of ATP 2087. Until the company demonstrates a funding path that does not require deeply discounted serial placements — ideally a farm-down or partner-carried programme — the probability-weighted outcome for existing shareholders is dominated by dilution. Positioning is best deferred until test results and financing terms are known.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Background | Education | Age | Source |
|---|---|---|---|---|---|---|
Andrew Bald | Managing Director (executive) | Director 6 Jun 2022; MD 7 Apr 2025 (H1 2026 Interim says 4 Apr 2025) | 35+ years in financial markets; founder/executive director of Panthea Capital Partners (corporate advisory, capital raising for junior resource companies); MD of Burleson Energy 2013–2016 (Texas production); former NED of AXP Energy | BEc (Hons) | — | FY2025 AR; Oct 2026 presentation; Investing.com |
Greg Channon | Non-executive director; described as Chairman in FY2025 AR and Oct 2026 presentation; Chair of Audit & Risk Committee | 17 Aug 2020 | Geologist, 35+ years; Delhi, Santos, Fletcher Challenge Energy, Shell, Swift Energy, BrightOil, Elixir, Pathfinder; Executive Chairman of RL Energy and NED of Samson Oil & Gas (per Oct 2026 presentation); company's competent person | BSc (Hons) | — | FY2025 AR; Oct 2026 presentation |
Andrew Childs | Non-executive director; described as Non-Executive Chair in H1 2026 Interim; Chair of Remuneration & Nomination Committee | 22 Apr 2020 per FY2025 AR (6 Jun 2022 per H1 2026 Interim) | Petroleum geologist, 35+ years; formerly Executive Chairman of Xstate; former NED Chairman of Australian Oil Company (formerly Sacgasco); former NED of ADX Energy | BSc | Born 1959 per Yahoo Finance | FY2025 AR; H1 2026 Interim; Yahoo |
Uno Makotsvana | Company Secretary (joint, appointed May 2026) | May 2026 | 25+ years CFO/commercial experience; ex-Deloitte; CFO of UK-listed Capital Limited for ~3.5 years from 2012 | BCompt; Grad Dip BA (Alliance Manchester); CA (ANZ) | — | June 2026 Quarterly; Oct 2026 presentation |
Jordan McArthur | Company Secretary (since 17 Apr 2018; joint secretary status after May 2026 not confirmed) | 17 Apr 2018 | Chartered Accountant, 15 years corporate/financial experience | CA | — | FY2025 AR |
“—” = not publicly disclosed.
Executive Leadership Team
| Name | Role | Background |
|---|---|---|
Janet Mignano (JJM Consultancy) | Petroleum engineering | 20+ years; former Subsurface Manager and Drilling & Completions Manager at AGL Energy |
Calan McIntyre | Senior geoscientist | 30+ years; ex-BHP Billiton Petroleum Australia Exploration Manager, TOTAL E&P Australia GM Geoscience, Santos GM Offshore Exploration |
Peter Bekkers | Senior geoscientist | ~30 years international new ventures and seismic interpretation |
Mike Andronov | Operations manager (per Proactive, Sep 2025) | — |
“—” = not publicly disclosed.
Directors' Remuneration
| Director | Salary & fees | Non-monetary (D&O insurance) | Superannuation | Share-based | Total | Additional consulting invoiced (related party) |
|---|---|---|---|---|---|---|
Andrew Bald (MD from Apr 2025) | 171,250 | 5,970 | 0 | 0 | 177,220 | 107,500 |
Andrew Bald (NED, Jan–Apr 2025) | 20,000 | 2,985 | 0 | 0 | 22,985 | — |
Greg Channon (NED) | 60,000 | 8,954 | 0 | 0 | 68,954 | 112,995 |
Andrew Childs (Exec to 7 Apr 2025) | 17,897 | 2,985 | 2,103 | 0 | 22,985 | 54,000 |
Andrew Childs (NED from 7 Apr 2025) | 35,795 | 5,970 | 4,205 | 0 | 45,970 | — |
Total KMP | 304942 | 26864 | 6308 | 0 | 338114 | 274495 |
Governance Overview
| Item | Detail |
|---|---|
Board size | 3 |
Committees | Audit & Risk Management Committee (2 members); Remuneration & Nomination Committee (2 members) |
Meetings FY2025 | 6 board meetings (Bald attended 5 of 6); 1 audit committee meeting |
Chair/CEO separation | Yes |
Gender diversity | Board is all-male; no women on the board (the senior engineering consultant is female) |
Major Shareholders
| Holder | Stake | Date | Source |
|---|---|---|---|
Blue Sky Resources Limited | 28,617,247 shares, 8.90% (pre-consolidation, pre-2025 raisings; now materially diluted) | 27 Mar 2023 | Market Index |
Unnamed holder | Notice of ceasing to be a substantial holder lodged | 4 Jun 2026 | Company ASX register |
Andrew Bald (director) | 3,219,780 shares; 1,793,792 options (31 Dec 2025) | 31 Dec 2025 | FY2025 AR |
Andrew Childs (director) | 2,787,743 shares; 1,793,792 options | 31 Dec 2025 | FY2025 AR |
Greg Channon (director) | 516,993 shares; 1,793,792 options | 31 Dec 2025 | FY2025 AR |
Competitive Landscape
Key Competitors
| Competitor | Relationship to Xstate | Relative positioning | Source / verification |
|---|---|---|---|
Elixir Energy (ASX: EXR) | Diona JV partner and operator; also competitor for Taroom capital/acreage | Largest Taroom acreage position; ~3.5 Tcfe 2C contingent resources across its BCG portfolio after a 24% upgrade (Apr 2026) | Proactive Investors |
Omega Oil & Gas (ASX: OMA) | Neighbour to ATP 2087 (Canyon project); won PLR2026-1-10 with Tri-Star and Beach | Canyon-1H normalised 987 bopd + 1.45 MMscf/d; testing scheduled 1H 2027 | ASX 13 Oct 2026 |
Shell / QGC | Neighbour; won PLR2026-1-9 | Super-major; Fantome-1 operator; 3D seismic near completion | ASX 13 Oct 2026 |
OGT Energy (private) with Denison Gas | Won PLR2026-1-8, immediately down-dip of Diona-1; owns pipeline near Diona | Waggamba stimulated horizontals flowing oil, gas and liquids | ASX 13 Oct 2026 |
Australia Pacific LNG (Origin/ConocoPhillips/Sinopec) | Condabri CBM field east of ATP 2087 | Major LNG producer | ASX 13 Oct 2026 |
Amplitude Energy (ASX: AEL) | ATP 2087 partner | Established east-coast gas producer | ASX 13 Oct 2026 |
Beach Energy (ASX: BPT) | Partner in Omega's PLR2026-1-10 JV | Mid-cap producer | ASX 13 Oct 2026 |
Tri-Star (private) | Partner in Omega JV | Private Surat operator | ASX 13 Oct 2026 |
Santos (ASX: STO) | Major Bowen-Surat/GLNG player | Large-cap | — |
Tamboran Resources (ASX/NYSE: TBN) | Competes for unconventional-gas investor capital (Beetaloo, NT) | Record Beetaloo flow rates in 2025 (Shenandoah South 2H ST1, 90-day average 6.5 MMcf/d) | Proactive |
Peer Comparison FY2025
| Attribute | Xstate (XST) | Elixir (EXR) | Omega (OMA) | Shell/QGC |
|---|---|---|---|---|
Revenue | Nil (H1 2026) | — | — | — |
Taroom position | 51% Diona sub-block (west); 25% ATP 2087 (east, pending) | Largest Taroom acreage, >100 km of linear exposure per Elixir | Canyon project + PLR2026-1-10 | Fantome block + PLR2026-1-9 |
Certified resources | None (internal prospective only) | ~3.5 Tcfe 2C (certified) | — | — |
Flow test status | Gas to surface, no sustained rate | Diona operator; Lorelle-3 appraisal | Canyon-1H normalised oil + gas rate | Fantome-1 flowed gas (2012) |
Market cap (approx.) | ~A$5–7m | — | — | — |
Cash | ~A$0.9m (30 Sep 2026, incl. receivables) | — | — | — |
