Elixir Energy (ASX:EXR) reports progress at Lorelle-3H appraisal well

Elixir Energy has provided an operational update on the Lorelle-3H appraisal well in ATP2056 within Queensland’s Taroom Trough, reporting the successful completion of a Diagnostic Fracture Injection Test (DFIT) and the mobilisation of stimulation and well testing equipment.

Highlights

• DFIT successfully completed at the Lorelle-3H appraisal well
• Preliminary reservoir pressure of approximately 6,350 psi recorded
• Over pressured gas gradient of approximately 0.6 psi/ft reported
• Closure pressure measured at 8,759 psi within the Tinowon ‘Dunk’ Sandstone
• Planned stimulation program increased from 11 stages to 12 stages
• Mobilisation and rigging up of stimulation and well testing equipment underway
• Stimulation operations targeted to commence towards the end of the week

Elixir reported that initial pressure monitoring from the DFIT indicates a preliminary reservoir pressure of approximately 6,350 psi.

The company reported an over pressured gas gradient of approximately 0.6 psi per foot. Further data is being collated to define the exact pore pressure, which will be downloaded from down hole gauges prior to stimulation operations.

The company also reported that closure pressure for the Tinowon ‘Dunk’ Sandstone was measured at 8,759 psi during the DFIT program.

Elixir noted that this represents the minimum in situ horizontal stress, or the minimum pressure required to hold open an induced hydraulic fracture.

Following the DFIT, Elixir increased the official number of stimulation stages from 11 to 12, with the company stating that the additional stage was included due to the quality of the results observed during the DFIT at the toe end of the well and the minor incremental cost required to include it.

Elixir noted that the additional stage is incremental to the original 6 million pound 11 stage stimulation program.

Lorelle-3 was drilled in two phases within ATP2056, where Elixir holds a 50% interest and operates the Lorelle-3 and Lorelle-3H appraisal well, while Santos operates the permit thereafter.

The pilot hole was drilled to a total vertical depth of 3,580m and collected core and logs across various Permian sandstone reservoirs within the Taroom Trough, with the announcement stating that the evaluation program included 148m of measured net gas-condensate pay.

The second phase of drilling included the placement of a 1,157m horizontal sidetrack into the Tinowon ‘Dunk’ Sandstone at 3,332m measured depth below rotary table, with the well subsequently cased and suspended for stimulation and production testing.

Elixir reported that data and core gathered from the evaluation campaign led to a series of experiments and laboratory work associated with the stimulation program.

The company stated that costs associated with drilling, coring, logging, analysis, completion, stimulation and testing of Lorelle-3 qualify for up to a 48.5% refund through the Federal Government’s Research and Development Tax Incentive and tax return process.

Elixir is mobilising and rigging up stimulation and well testing equipment, with stimulation operations targeted to commence on schedule towards the end of the week.

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