Elixir’s Taroom Trough Plans Hinge on Upcoming Flow Tests and Rig Mobilisation
Elixir Energy reports promising gas pay results at Diona-1 and secures a premium drilling rig for the upcoming Lorelle-3 appraisal well, positioning itself for a pivotal phase in the Taroom Trough.
- Diona-1 well logs 23m net gas pay with 10% average porosity
- Elixir resumes operatorship for completion and production testing at Diona-1
- Terms secured for H&P FlexRig 648 to drill Lorelle-3 in January 2026
- Company ends quarter with $9.2 million in cash and receivables including $3.8 million R&D refund
- Seismic acquisition and contingent resource evaluation progress in Taroom Trough
Diona-1 Drilling Success Sets Stage
Elixir Energy has reported encouraging results from its Diona-1 well in Queensland’s Taroom Trough, revealing a total of 23 metres of net gas pay across three Permian formations with average porosities of 10%. This initial success has prompted the company to resume operatorship of the well to advance completion and production testing, a critical step toward commercialising the resource.
The well’s logged zones suggest a simplified stimulation and completion strategy, with pay zones confined within each formation. Notably, the proximity of Diona-1 to existing pipeline infrastructure offers a pathway to early production and cash flow generation if flow testing confirms commercial viability.
Strategic Rig Partnership for Lorelle-3
Elixir has already secured land access and long lead items, with civil works set to commence shortly. The well will target multiple Permian sandstone formations with an expanded evaluation program designed to validate the Basin Centred Gas Play model and inform optimal stimulation and production methods.
Financial Position and Industry Validation
Elixir closed the quarter with $9.2 million in cash and receivables, including an anticipated $3.8 million Research & Development tax refund related to prior drilling activities. This financial footing supports the delivery of Phase 1 of its Strategic Plan, which focuses on resource delineation and appraisal activities.
Market conditions further bolster Elixir’s prospects, with East Coast gas prices reaching elevated levels, Wallumbilla spot prices exceeding $17 per gigajoule and Brisbane’s short-term trading market averaging nearly $13 per gigajoule. Additionally, recent capital raises and operational progress by neighbouring operators Omega Oil & Gas and Beach Energy reinforce the Taroom Trough’s growing industry interest and validation.
Advancing Resource Evaluation and Seismic Acquisition
Elixir is actively progressing seismic acquisition programs, awarding contracts for 200 kilometres of new 2D seismic data as part of its farm-in commitments. The company is also working with independent certifiers to evaluate contingent resources on its ATP2077 acreage, aiming to convert exploration success into certified resource bookings.
Meanwhile, the joint venture with XState Resources on the Diona sub-block has transitioned to Elixir’s operatorship following XState’s completion of carry obligations, enabling Elixir to lead the upcoming stimulation and flow testing phases.
Bottom Line?
With drilling and testing poised to accelerate, Elixir Energy’s next quarter will be pivotal in defining the commercial potential of its Taroom Trough assets.
Questions in the middle?
- Will flow testing at Diona-1 confirm commercial gas production potential?
- How will results from Lorelle-3 impact Elixir’s resource valuation and development plans?
- What are the timelines and expected outcomes for contingent resource certification in ATP2077?
