Xstate Resources Limited provided its shareholders and the market with an update on the oil development wells in Alberta, Canada. The Taber new drills have been completed with pump, tubing, rods, and surface drivers. The pipelines are currently being trenched and pressure tested.

It is expected the surface piping and coating to be completed and installed shortly. A temporary generator will be installed until the power company can upsize the transformer. The third well, Killam 16344113, drilling rig expected to be on location in approximately two weeks depending on weather.

The cost of the 3 well development program is estimated at A$2.7 million (gross), which will be circa AUD 945,000 net to Xstate. The operator anticipates a gross increase in production of 200 BOPD, which is 70 BOPD net to Xstate. Given the current benchmark oil price of around US$100/bbl, these wells are projected to pay back the capital expenditure in less than 12 months.