Elixir Energy Limited (ASX:EXR) commences testing operations at Diona-1 in the Taroom Trough

Elixir Energy as operator and 49% holder of the ATP2077 Diona sub-block joint venture in the Surat-Bowen Basin in Queensland has provided an operations update on the stimulation, completion and flow testing operations of the Diona-1 well.

Highlights

• Stimulation equipment has arrived and rigging up has commenced at the Diona-1 well site
• Three zone fracture stimulation of the measured Permian net gas-condensate pay to commence imminently
• Completion and flow testing operations to follow stimulation program
• Testing operations may confirm a greater westerly extent of the Taroom Trough encompassing the Diona gas resource
• Flow back, production and pressure monitoring test expected to commence in approximately one week
• ATP2077 Diona sub-block equity interest EXR 49% and XST 51%

Delivery of key equipment for the three zone fracture stimulation operations of the net gas-condensate pay measured in the Diona-1 well has occurred, with operations to commence imminently.

These operations will be followed by completion of the well with 2-3/8” tubing with a workover rig and then rigging up for a period of flow testing and pressure monitoring.

Post fracture stimulation, completion and rigging up of well testing equipment, a flow back and production and pressure monitoring test will commence, with these operations expected to start in approximately one week.

The three zones of gas-condensate pay that have been measured are within what is interpreted as over-pressured Permian sands from reservoir units that have produced locally or tested successfully from within the Taroom Trough.

Collection and testing of hydrocarbon samples and measurement and interpretation of flowing pressures may provide the critical data required to evaluate the resource potential of the Diona sub-block.

This may include the information required to confirm that the well sits inboard of the western edge of the Taroom Trough, which will increase the overall resource potential and prospectivity of the area.

On success of these objectives, Elixir Energy’s significant Taroom Trough acreage would increase with the addition of a percentage of the gross 375 km² sub-block, with a corresponding impact on the Company’s Taroom Trough resource position.

Diona-1 is located between the Silver Springs Gas Plant and the Waggamba gas field in the Surat-Bowen Basin of Queensland and adjacent to the Waggamba to Silver Springs gas pipeline, with the pipeline less than 100m from the well pad and an above ground tie-in point approximately 1,000m away.

The pipeline connects via the Silver Springs Gas Plant to the Wallumbillia Gas Hub, the spot pricing point for eastern seaboard gas sales.

Elixir Energy was fully carried for the drilling of the Diona-1 exploration well by Xstate Resources Limited, which holds a 51% interest in the ATP2077 Diona sub-block joint venture, with Elixir holding 49%.