XSTATE RESOURCES LTD - ASX: XST

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Description

XState Resources (XST) is an ASX listed company which is now focused on the oil and gas sector after previously operating in the uranium exploration industry.

XState’s strategy is to generate value for shareholders through exploration and appraisal drilling in areas that have high prospectivity for oil and gas, and access to oil and gas production and transport infrastructure, but which have been relatively under-explored.In June 2010, XState Resources began emerging as an oil and gas company by obtaining shareholder approval to acquire 100% of Bombora Energy Limited, an unlisted Australian public company, which is earning 10% interests in onshore and offshore hydrocarbon permits in Tunisia and in an Italian offshore permit.

Tunisia and Italy have established oil and gas industries, including direct gas pipeline links from Tunisia into European gas markets.

XState Resources announced the results from its first well, the Lambouka -1 well in September 2010. Lambouka-1 was the first of two large oil and gas prospects that XState planned to drill in 2010 in Tunisia.

Analysis of the Lambouka -1 well indicated an untested gas and associated condensate (light oil) discovery, with at least two hydrocarbon bearing zones interpreted to be present in the Abiod Formation. Upon completion of the drilling of Lambouka-1 and the continued technical review of the results it was decided to suspend the well in readiness for future re-entry and further evaluation of hydrocarbon-bearing zones. Currently estimated Contingent (mean recoverable) Resources at Lambouka are 309 Bcf gas and 24 million barrels of condensate (75 mmboe).

XState has a 10% equity interest (with an option to increase to 20% equity) in the offshore Dougga gas and condensate discovery which tested gas and condensate and has estimated mean recoverable Contingent Resources of 405 Bcf of gas and 28 million barrels of condensate (96 mmboe).

XState plans to drill the large Sidi Dhaher prospect in early 2011. This large prospect, which has the potential for mean recoverable Prospective Resources of over 300 barrels of oil from up to 6 reservoirs, is located onshore Tunisia in area of good oil and gas infrastructure and support facilities. Exploration plans are being advanced with rig contracting and well site permitting underway.

Mine For

oil, gas

Location of operation(s)

Tunisia, Italy

Address

41 Stirling Hwy
NEDLANDS, WA, Australia

Phone

(61 8) 9423 3200

Email

Website

http://www.xstate.com.au/

Last Updated

18/01/2011