Elixir Energy (ASX:EXR) provides operational update on Lorelle 3 preparations

Elixir Energy has progressed procurement and site activities for the Lorelle 3 appraisal well in Queensland’s Taroom Trough, confirming execution of its rig contract and steady advancement of civil works as it prepares for drilling in early 2026.

The update outlines key operational steps that position the company for one of its most important wells in the region.

Highlights

• Rig contract executed with Helmerich and Payne for the FlexRig 3 MM 648

• Rig specifically imported by Shell for its Taroom Trough appraisal campaign

• Mobilisation scheduled to commence on 12 January 2026

• Civils and well pad construction 30 per cent complete

• Lorelle 3 planned to reach 3,600 metres total depth

• Expanded program to include coring and logging across Permian sandstone targets

• Up to 48.5 per cent refund available on eligible qualifying activities

• Located approximately 10 kilometres from Shell’s Dunk 1 well penetration

Elixir has executed the rig contract with Helmerich and Payne for the use of the FlexRig 3 MM 648, which has been imported for Shell’s upcoming appraisal campaign in the Taroom Trough.

The company notes that a similar Helmerich and Payne rig was previously brought into Australia by Tamboran Resources where it demonstrated gains in efficiency and efficacy in drilling operations in the Beetaloo Sub Basin.

This positions Lorelle 3 to be drilled using the same class of equipment selected for Shell’s program in the same reservoirs.

Civils, site preparation and well pad construction are underway and 30 per cent complete, and all long lead items have been secured.

The rig is expected to depart for the Lorelle 3 site on 12 January 2026 to begin mobilisation and rig up, with the well scheduled to spud shortly afterwards.

Lorelle 3, located in ATP2056 where Elixir holds 50 per cent and is the operator of the appraisal well, with Santos to operate the permit thereafter, is planned to be drilled to a total depth of 3,600 metres.

The well will collect core and logs as part of an expanded evaluation program across the Permian sandstone targets within the Basin Centred Gas Play.

The appraisal well will also be eligible for up to a 48.5 per cent refund on qualifying activities through the Federal Government’s Research and Development Tax Incentive and regular tax return processes, which include the drilling, coring, logging, analysis, completion and testing of the well.

The company states that Lorelle 3 will be one of the highest impact wells in the Taroom Trough in 2026, and it will be drilled and tested approximately 10 kilometres from the best penetration of the Taroom Trough’s Tinowon Dunk Sands in Shell’s Dunk 1 well.

Lorelle 3 will also be the first well outside Shell’s acreage drilled on the upper western flank of the Taroom Trough.

According to the company, on successful logging and testing the well will provide validation of the Shell like quality acreage that it owns.

Managing Director and Chief Executive Officer Stuart Nicholls said,

“Elixir is all set to drill the high impact Lorelle 3 appraisal well. As per our strategy of being a fast follower, we are drilling into the same reservoirs as Shell, on the boundary of Shell’s primary area of operations and using Shell’s specifically imported equipment. Lorelle 3 may be a defining well in the evolution of the exciting Taroom Trough.”

Elixir Energy describes itself as the largest acreage holder in the Taroom Trough in Queensland’s Bowen Basin.

The Taroom Trough is noted as being geologically analogous to the Montney Formation in Canada and is located near the Wallumbilla Gas Hub, multiple gas pipelines, LNG export infrastructure, refineries and established onshore gas services.

Elixir is aiming to appraise its approximately 2.8 TCF of independently certified 2C Contingent Gas Resources which border Shell’s primary area of investment across the Basin Centred Gas Play.

With site works in progress and a firm mobilisation schedule, the Lorelle 3 program moves into a decisive phase.

The well will provide detailed technical data across key Permian intervals and contribute to the broader understanding of the Basin Centred Gas Play in the Taroom Trough.

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