Xstate Resources Limited informed its shareholders and the market of the results of the production test at Anshof-3, in which Xstate has 20% working interest. The company advises that a water free oil flow has been recorded from the Anshof-3 well in the ADX-AT-II license in Upper Austria during flow testing of the Eocene oil zone. Oil was produced to surface at an approximate rate of 75 barrels of oil per day (gross), which is 15 barrels of oil per day net to Xstate.

The oil flowed from a 6 metre gross Eocene oil column intersected in the Anshof-3 well. The well has been shut in to record a pressure build up which is expected to provide further information in relation to the continuity of Eocene oil reservoirs around the well. Well productivity was within expectation for the relatively thin column encountered at the crest of the Anshof structure.

Oil rates in subsequent appraisal wells planned on the Eastern flank of the structure where the Eocene reservoirs are expected to thicken are likely to result in significantly higher production rates. The well flowed without any acidization, which is usually required to overcome reservoir damage from drilling. Acidization in offset wells has resulted in substantial increases in production rates.

Planning has already commenced to install a pump in the well and a early production testing system so that commercial oil sales can commence. Eocene oils produced in the area typically have a low gas oil ratio and require pumping. It is likely that the well will be acidized ahead of production with a view to enhancing oil rates from the well.

The 32° API oil can be delivered for sale by truck to a nearby oil terminal prior to securing a production license for the entire Anshof discovery.