A OIL PRODUCER, page-14

CHAIRMAN’S COMMENT
“Cashflow for the quarter was boosted with the completion of our Alberta Plains Assets divestment
transaction. At the end of the quarter, the Company has A$1.225m cash for utilisation in future
opportunities of the Company. The remaining assets within Xstate’s portfolio continue to operate
effectively for the Company.”
CANADA: RED EARTH (25% WI)
During the quarter, the Operator undertook a moderate level workover and maintenance program on
the larger producing wells within the Red Earth area which took many of them offline for a number of
weeks. These wells are back online post quarter-end and the Red Earth operations have returned to
profitability in the third quarter. No cash has been received from operations however due to the costs
of the maintenance program as proceeds were used to reduce the Company’s overall liability to the
Operator from operations.
XST share of Oil production in
Canada
September Quarter 2023 June Quarter 2022
Gross production bbl (before
royalties)
17,368 18,942
Based on current production and commodity price increases observed, Xstate expects that cash flows
will resume in the fourth quarter from the Red Earth operations.