Elixir Energy (ASX:EXR) confirms Diona-1 discovery in Queensland’s Taroom Trough

Elixir Energy has confirmed Diona-1 has met its key exploration objectives, confirming the discovery and the presence of an overpressured and recoverable Permian gas and condensate resource at its ATP2077 Diona sub-block in Queensland’s Surat-Bowen Basin.

The company said sufficient evidence has now been obtained to include the majority of the Diona sub-block within the Taroom Trough and the joint venture will now progress an independently certified Contingent Resource booking.

Diona-1 continues producing gas during testing while the well remains in the flow back and clean-up phase.

Highlights

• Diona-1 met its key exploration objectives
• Elixir confirmed a recoverable gas and condensate resource
• The well confirmed an overpressured system
• Gas composition recorded 0% CO2 and 0 ppm H2S
• Approximately 45% of injected stimulation fluid has been recovered
• The joint venture will progress an independently certified Contingent Resource booking

Elixir said Diona-1 successfully proved a recoverable gas and condensate resource, an overpressured system and low impurity hydrocarbon composition, with these measurements and observations consistent with the Basin Centred Gas setting of the Taroom Trough.

The company said it will commence modelling the application of horizontal drilling and the resulting flow rates and recoverable resources that can be achieved, while the joint venture pursues an independently certified Contingent Resource.

The inclusion of the Diona sub-block increases Elixir’s Taroom Trough acreage position by a further net 184km² or 45k acres, with the company stating its total Taroom Trough acreage position now stands at 548k net acres, which it said is the largest in the play.

Operationally, Diona-1 remains in the flow back and cleanup phase after recovering approximately 45% of total injected fluid, with the company stating the well continues producing gas throughout the flow-back period, with gas flared at surface and field measurements recording 0% CO2 and 0 ppm H2S.

Elixir said the well is intermittently recovering incremental fluid and is assessing artificial lift options to accelerate the recovery process.

Elixir Managing Director and Chief Executive Officer Stuart Nicholls said the well had extended Elixir’s position within the basin.

“Diona-1, now officially a discovery, has successfully extended the Taroom Trough westerly boundary, and we now include this area in our primary portfolio. This unoptimised vertical exploration well continues to show encouraging results and flows which may improve significantly once back pressure is reduced sufficiently from the remaining stimulation fluids.”

Diona-1 was fully carried by Xstate Resources as part of a transaction agreed in 2025, with the well located between the Silver Springs Gas Plant and the Waggamba gas field in the Surat-Bowen Basin and adjacent to the Waggamba to Silver Springs gas pipeline.

Elixir said the pipeline is less than 100m from the well pad, with an above ground tie-in point approximately 1,000m away, and noted the pipeline connects via the Silver Springs Gas Plant to the Wallumbilla Gas Hub, the spot pricing point for eastern seaboard gas sales.

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