Longest Lateral Drilled in Taroom Trough Yields Over 1,000m Net Gas Pay

Record-Breaking Drilling Campaign

Elixir Energy Limited has announced the successful completion of the Lorelle-3H well in Queensland’s Taroom Trough, marking a significant milestone in the company’s exploration efforts. The well reached a measured depth of 4,477 metres, including a 1,157-metre horizontal lateral drilled entirely within the primary target formation, the Tinowon ‘Dunk’ Sandstone. This lateral section is the longest ever drilled in the Taroom Trough, underscoring Elixir’s operational capabilities in a highly competitive basin.

Elevated mud gas readings and advanced logging tools confirmed the presence of 1,033 metres of high-quality net gas-condensate pay. The reservoir exhibits an average porosity of 11.2%, with peak porosities reaching 18%, alongside hydrocarbon saturations that surpass those seen in the initial vertical pilot hole. These findings suggest a more laterally continuous and homogeneous reservoir than previously understood, which bodes well for resource estimation and future development.

Implications for Taroom Trough Development

The Lorelle-3H well’s results validate Elixir’s substantial acreage position adjacent to Shell’s established operations in the basin. The well’s location on the upper western flank of the Taroom Trough represents a northern extension of proven Permian reservoirs, expanding the basin’s prospective footprint. The quality and thickness of the Tinowon ‘Dunk’ Sandstone reservoir units reinforce the potential for commercial gas and condensate production from this Basin Centred Gas Play.

Following casing and cementing, the well has been suspended in preparation for a multi-stage fracture stimulation and a 30-day production test scheduled for the second quarter of 2026. This testing phase is critical, as it aims to demonstrate commercial flow rates and underpin Elixir’s move towards its maiden reserves booking in the Taroom Trough. The company’s Managing Director, Stuart Nicholls, highlighted the operational achievement of drilling nearly 5,700 metres across the pilot and lateral wells in just 46 days, a testament to Elixir’s efficiency and technical expertise.

Next Steps and Strategic Outlook

Data collected from the expanded logging and coring program will inform the design and optimisation of the fracture stimulation program, aiming to maximise productivity and resource recovery. Additionally, further evaluation of other reservoir units such as the Lorelle Sandstone and Kianga Group is underway, potentially opening near-term appraisal opportunities given their promising hydrocarbon-bearing characteristics.

Elixir’s progress in the Taroom Trough is supported by a significant federal government research and development tax incentive, which may refund up to 48.5% of qualifying well costs. This financial support enhances the project’s economics as Elixir advances towards commercialisation.

Overall, the Lorelle-3H well represents a watershed moment for the Taroom Trough, confirming both the extension of Shell’s primary area of operations and the presence of high-quality reservoirs outside their acreage. The upcoming production test will be closely watched by investors and industry observers as a key indicator of Elixir’s potential to unlock substantial gas resources in a strategically important region.