Elixir Energy has successfully drilled the Lorelle-3 pilot well to 3,580 metres in Queensland’s Taroom Trough, intersecting multiple Permian hydrocarbon reservoirs including a thick section of the primary Tinowon ‘Dunk’ Sandstone. Wireline logging and upcoming stimulation tests aim to confirm commercial gas flow potential.
- Lorelle-3 pilot hole drilled to 3,580m with multiple Permian reservoirs intersected
- Primary target Tinowon ‘Dunk’ Sandstone shows 60m thickness with 18m high-quality core recovered
- Wireline logging underway to confirm reservoir quality and hydrocarbon saturation
- Planned horizontal sidetrack and multi-stage fracture stimulation test scheduled before June 2026
- Well located near Shell’s Dunk-1 well, validating Elixir’s large Taroom Trough acreage
Successful Drilling Milestone
Elixir Energy Limited (ASX – EXR) has reached a significant milestone in its Taroom Trough appraisal campaign with the successful drilling of the Lorelle-3 pilot well to a depth of 3,580 metres. Located in Queensland’s Bowen Basin, this well has intersected multiple Permian-aged hydrocarbon reservoirs, notably the primary target, the Tinowon ‘Dunk’ Sandstone. Early indications from logging while drilling (LWD) tools and elevated mudgas readings suggest promising reservoir presence.
Core Recovery and Reservoir Quality
Elixir retrieved 18 metres of core from the upper section of the Tinowon ‘Dunk’ Sandstone, with preliminary observations highlighting high-quality sandstone. The total thickness of this primary reservoir is estimated at 60 metres, pending confirmation from upcoming wireline logging. Secondary and tertiary reservoir targets, including the Overston and Lorelle Sandstones as well as the Kianga Group, were also intersected, broadening the potential resource base within the well.
Next Steps – Logging and Stimulation
With drilling operations complete, Elixir has commenced the retrieval of the drilling assembly to facilitate a comprehensive wireline logging program. These logs will provide critical data on reservoir thickness, rock quality, and hydrocarbon saturation, essential for validating the preliminary findings. Following this evaluation, the company plans to drill a horizontal sidetrack of at least 1,000 metres into the primary target. This will be cased and prepared for a multi-stage fracture stimulation and production test aimed at demonstrating commercial flow rates of gas and condensate by mid-2026.
Strategic Location and Market Context
Lorelle-3 is strategically 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 opportunity to validate Elixir’s substantial acreage, which holds an independently certified contingent gas resource of approximately 2.8 trillion cubic feet. The Taroom Trough’s geological analogy to Canada’s prolific Montney Formation, combined with its proximity to major gas infrastructure and LNG export facilities, underscores the commercial potential of this project.
Government Support and Financial Incentives
Elixir’s appraisal activities at Lorelle-3 qualify for up to a 48.5% refund under the Australian Federal Government’s Research and Development Tax Incentive scheme. This support offsets costs related to drilling, coring, logging, analysis, completion, stimulation, and testing, enhancing the financial viability of the project as it advances toward potential commercialisation.
Bottom Line?
Lorelle-3’s upcoming flow tests will be pivotal in confirming Elixir’s Taroom Trough gas play as a commercially viable resource.
Questions in the middle?
- Will wireline logging confirm the preliminary reservoir quality and hydrocarbon saturation?
- Can the planned fracture stimulation achieve commercial flow rates of gas and condensate?
- How will Lorelle-3’s results impact Elixir’s resource valuation and development timeline?