Elixir Energy (ASX:EXR) provides operational update on Lorelle-3H well

Elixir Energy has provided an update on the high-impact Lorelle-3H appraisal well in ATP2056 within Queensland’s Taroom Trough.

The company has commenced the stimulation, completion, and testing phase, beginning with the Diagnostic Fracture Injection Test (DFIT) to measure reservoir pressures and gather critical data to support the design of the multi-stage stimulation.

This phase follows extensive R&D and design work conducted by SLB, Corelab, and Halliburton, culminating in the preparation for an 11-stage, six million pound stimulation with immediate flow-back operations.

Highlights

• DFIT commenced at the toe of Lorelle-3H to measure pressures in the Tinowon ‘Dunk’ Sandstone
• Completion of 11-stage stimulation design using six million pounds of proppant
• Flow-back and testing plan prepared with SLB and EnServe to deliver IP30 production curve
• Horizontal well positioned in Tinowon ‘Dunk’ Sandstone to validate commercial gas and condensate flow rates
• Production test scheduled to deliver high-quality IP30 data by end July 2026

The DFIT aims to provide essential inputs into the full multi-stage stimulation and testing program, with data from Lorelle-3 and 3H wells, including core and petrophysical analysis, used to design optimal fracture stimulation and production testing under the company’s pre-approved R&D program.

The 11-stage stimulation will deploy six million pounds of proppant into 1,033 metres of gas-condensate pay, where porosities average 11.2% and reach up to 18%.

Following the stimulation, a three to five-day flow-back period will record pressures, temperatures, and flowing conditions to support preparatory work for commercial development.

The subsequent production test, scheduled to commence in late June, will deliver a high-quality IP30 data set capable of supporting the well’s primary objectives, including commercial flow modelling and preparatory development works.

Lorelle-3H represents a critical appraisal step for Elixir, being the first horizontal well tested outside of Shell’s primary area of operations in the Taroom Trough.

The well confirms the northern extension of the Tinowon ‘Dunk’ Sandstone play, demonstrating thick gas and gas-condensate bearing reservoirs within 148 metres of measured net pay, and validating Elixir’s 50% operated interest while reinforcing the strategic value of the company’s Taroom Trough acreage.

Looking forward, the operational and testing outcomes from Lorelle-3H will underpin Elixir’s assessment of ~3.5 TCF of independently certified 2C Contingent Gas Resources, supporting future production planning and potential maiden Reserve conversion.

The results will provide a definitive dataset for commercial modelling and contribute to the appraisal of Elixir’s broader acreage position in proximity to key infrastructure, including the Wallumbillia Gas Hub, gas pipelines, and LNG export facilities within Queensland’s Bowen Basin

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