Resources Top 5: Xstate rockets 243pc on Surat-Bowen Basin gas find

• XST has encountered a significant Permian-to-basement overpressured gas column
• PNN executes option agreement to acquire Gamma heavy rare earths project near Mountain Pass mine
• Further exploration planned by RKB at Hurricane in northeast Queensland

Your standout small cap resources stocks for Wednesday, October 8, 2025.

Xstate Resources (ASX:XST)

The Surat-Bowen Basin of Queensland has drawn plenty of attention in recent years owing to its growing potential to provide much needed gas to Australia’s hungry east coast markets.

A new success story emerging from the basin is Xstate Resources (ASX:XST), which has encountered a significant Permian to basement overpressured gas column totalling around 181m in Diona-1 well.

This resulted in Xstate soaring around 243% to a four-year high of 7.2c with more than 163m shares changing hands valued at more than $9.4m.

Located between the Silver Springs Gas processing facility and the Waggamba gas field, Xstate’s Diona project is ideally placed adjacent to the Waggamba to Silver Springs gas pipeline. 

Diona-1 targeted three proven hydrocarbon reservoirs – Showgrounds, Tinowon and Wallabella. The lower two formations have given early signs of hosting significant quantities of flowing hydrocarbons.

This well has gone past 2,479m measured depth, drilling through the primary and secondary targets. 

The primary Jurassic target in the Showgrounds Sandstone was found to be well developed, but non-hydrocarbon bearing, however upon entering the Permian, Diona-1 encountered a 181m hydrocarbon prone Permian-to-basement sequence.

This included a significant overpressured gas column and a kick that required several increases to drilling mud weights and circulation of gas out of the hole.

Logging data indicates that several Permian aged hydrocarbon bearing sandstones are present within the Diona-1 well which warrant additional logging and testing.

These preliminary observations bode well for a potential discovery on the completion of additional data acquisition including wireline logging. 

“The Diona-1 well has proven the presence of (moveable) hydrocarbons across an unanticipated 180m+ (gross) column of the Permian section of this well,” MD Andrew Bald said. 

“We cannot rule out that Diona-1 has intersected the updip edge of the Taroom Basin Centred Gas play, which, if present, could offer us the opportunity to prove up a significantly larger unconventional resource.

“The strategy of targeting a multi-stacked play has paid dividends and early signs are that this could be a remarkable outcome for the team and the Company.”

Drilling operations are continuing to the final target depth of ~2,530m which will be followed by a wireline logging campaign to acquire additional data before releasing the final interpreted results.

Given the proximity to infrastructure, there is potential for a rapid path to market. Waggamba pipeline is less than 100m from the well pad with a valve tie-in point about 1km away.

Power Minerals (ASX:PNN)

After executing an option agreement to acquire the Gamma heavy rare earths project near MP Materials’ Mountain Pass mine in California, Power Minerals (ASX:PNN) jumped to a 12-month high of 21c, a 61.54% improvement on the previous close with more than 28m shares changing hands.

The project was initially explored for gold followed by uranium with rare earth elements (REE) identified only recently, mirroring the exploration history of Mountain Pass – the only operating REE mine in the US.

Gamma features a distinct uranium zone separate to the rare earth zones, which is also a characteristic of Mountain Pass. Historical shallow drilling intersected high-grade uranium such as 30.33m at 0.37% U3O8 including 6.25m at 1.3%.

While previous soil sampling returned up to 20,257ppm TREO, the historical drill core was never assayed for rare earth elements, which will form part of PNN’s upcoming exploration.

Once completed, the company says the acquisition will represent a strategic addition to its portfolio of high-quality critical minerals assets and reaffirm its position as an emerging critical minerals exploration and development company.

The acquisition also presents an opportunity to leverage the US Government’s commitment to establish a robust domestic supply chain for essential critical minerals.

Exploration plans include mapping and early-stage sampling ahead of systematic sampling and geophysical surveys, with a focus on expediting drilling.

The company has also received firm commitments for a $4.1m placement at 10c per share to fund early exploration plans at Gamma, expenditure on existing projects, the costs of the acquisition and general working capital.

Rokeby Resources (ASX:RKB)

Following widespread gold and antimony returned across multiple prospects in Rokeby Resources’ (ASX:RKB)  maiden RC drilling at the Hurricane project in northeast Queensland, the company is planning further exploration.

This will include phase 2 RC drilling later this quarter to extend mineralisation along strike and at depth at Bouncer South, Tornado and Hurricane prospects, where continuity has been demonstrated.

Step-out drilling will also be carried out to evaluate untested portions of the ~5km of mapped quartz vein strike across the project area.

The exploration will include systematic surface work with mapping and rock chip sampling to refine additional targets within the unexplored corridor between Bouncer in the northwest and Hurricane, Holmes and Tornado in the south.

Geological modelling and interpretation will define structural controls and guide drilling toward potential high-grade shoots.

Altech Batteries (ASX:ATC)

In partnership with AMPower, Altech Batteries (ASX:ATC) has launched a new 15-kilowatt-hour sodium nickel chloride uninterruptible power supply battery system for Europe’s gas and hydrogen pipeline infrastructure.

Gas pipelines support Europe’s energy system, carrying potentially explosive natural gas at high pressure and monitored by control stations, compressors, valves and safety systems.

“Gas pipeline infrastructure demands absolute reliability and explosion-proof technology,” ATC MD Iggy Tan said.

“Our new 384V/15kWh UPS battery not only meets these demands – it exceeds them, offering operators a true drop-in replacement for lead-acid and nickel-cadmium systems.

“We are proud to partner with AMPower on this breakthrough, and with the first order already secured, we anticipate strong and rapid adoption across Europe.”

Fin Resources (ASX:FIN)

(Up on no news)

The focus of Fin Resources (ASX:FIN) is the McKenzie Springs project in the Kimberley region of WA which is considered prospective for magmatic nickel-copper sulphide and PGE mineralisation.

Nickel, copper, cobalt and graphite occurrences have been identified at the 82km2 project 85km northeast of Halls Creek. 

Results from a recent Fixed Loop Electromagnetic (FLEM) survey are expected shortly and the company hopes this will identify new drilling targets.

The area surveyed was prioritised after mapping and rock chip sampling identified samples containing visible copper mineralisation (malachite) in outcrop/subcrop.

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Power Minerals and Altech Batteries are Stockhead advertisers, they did not sponsor this article.