Elixir Energy Advances Lorelle-3 Well Ahead of Key Flow Tests

Progressing the Lorelle-3 Appraisal Well

Elixir Energy Limited (ASX – EXR) has reported significant progress in its Lorelle-3 appraisal drilling campaign within Queensland’s Taroom Trough. The company has successfully drilled the intermediate section of the well to a depth of 2,320 metres measured depth below rotary table (MDRT) and is currently running casing in preparation for the next phase.

This intermediate section follows the completion of the top hole, which was cased and cemented at 682 metres. The careful installation and testing of critical well control equipment have allowed Elixir to advance drilling safely and efficiently.

Targeting the Basin Centred Gas Play

The upcoming drilling phase will focus on the reservoir section, specifically aiming for the Dunk member of the Tinowon Sandstone. This target is part of a broader evaluation program that includes several Permian sandstone formations within the Basin Centred Gas Play of the Taroom Trough, a sub-basin of the Bowen Basin.

Following the reservoir section drilling, Elixir plans to conduct coring operations and run wireline logs to gather detailed geological data. This expanded evaluation is designed to enhance understanding of the reservoir quality and support the design of subsequent stimulation and production testing.

Looking Ahead – Sidetrack and Flow Testing

One of the most anticipated steps is the planned horizontal sidetrack of at least 1,000 metres into the primary reservoir target. This sidetrack will be cased and suspended for multi-stage fracture stimulation and production testing, scheduled before June 2026. The objective is to demonstrate commercial flow rates of gas and condensate, which would be a critical milestone for Elixir’s resource development.

Notably, Lorelle-3 is positioned approximately 10 kilometres from Shell’s Dunk-1 well, the best penetration of the Tinowon ‘Dunk’ Sands in the Taroom Trough. This proximity offers a valuable benchmark and the potential to validate Elixir’s substantial acreage and resource estimates in the region.

Financial and Strategic Implications

The well’s qualifying activities, including drilling, coring, logging, and testing, are eligible for a significant refund of up to 48.5% under the Federal Government’s Research and Development Tax Incentive. This financial support reduces the capital risk and enhances the project’s economic attractiveness.

Elixir Energy holds the largest acreage position in the Taroom Trough, a region geologically analogous to Canada’s prolific Montney Formation and advantaged by proximity to major gas infrastructure and export facilities. Success at Lorelle-3 could materially advance the company’s goal of converting its ~2.8 trillion cubic feet of contingent gas resources into reserves, positioning it as a key player in Queensland’s onshore gas sector.