Elixir Energy and APA Group have partnered to assess the optimal pipeline route for gas from the Lorelle pilot project to Queensland’s Wallumbilla Gas Hub, aiming to support future development decisions.
- Early Works Agreement signed with APA Group for pipeline feasibility
- Study compares two pipeline routes to Wallumbilla Gas Hub
- Feasibility results including capital estimate expected in 12 weeks
- Flow testing of Lorelle-3H appraisal well scheduled for June 2026
- Separate study planned for monetising associated condensate and light oil
Feasibility Study Agreement with APA Group
Elixir Energy Limited (ASX:EXR) has entered an Early Works Agreement with APT Management Services Pty Ltd, a subsidiary of APA Group, to conduct a feasibility study on the most efficient and cost-effective pipeline route for gas produced from its notional 40 TJ/d Lorelle pilot project. The study aims to determine the best pathway for gas to reach the Wallumbilla Gas Hub (WGH), a key wholesale gas trading and pipeline interconnection point in Queensland.
The study will evaluate capital expenditure, operating costs, regulatory approvals, and timelines for two pipeline options: a ~25km route north to the Roma to Brisbane Pipeline (RBP) and a ~50km route northwest directly to Wallumbilla. The feasibility work will culminate in a Class-V capital estimate and a Level-1 schedule, expected within approximately 12 weeks, to support a final concept selection and prepare for pre-Front End Engineering Design (pre-FEED).
Supporting Reserve Booking and Production Testing
This feasibility study is a critical step ahead of the planned flow testing of the Lorelle-3H appraisal well, scheduled to commence in June 2026. The flow test is designed to demonstrate commercial flow rates of gas and condensate from the Basin Centred Gas Play in the Taroom Trough. Positive results could lead to a maiden reserves booking for Elixir’s substantial contingent gas resources in the region.
The Lorelle-3H well, drilled to a total depth of 4,477 metres with a 1,157-metre horizontal lateral, has already confirmed over 1,000 metres of net gas-condensate pay with promising reservoir quality. This well is the first horizontal well drilled outside Shell’s acreage in the Taroom Trough and validates the value of Elixir’s acreage position. The company’s recent drilling success and upcoming production testing were detailed in its March 2026 updates, highlighting the well’s significance in advancing the project’s commercial potential.
Monetising Associated Condensate and Light Oil
Alongside gas, Elixir expects to produce significant volumes of associated condensate and light oil from the Lorelle pilot. The company plans a separate study to optimise the sale and transport of these liquids into Queensland’s refining market. This approach reflects the integrated nature of the project’s hydrocarbon resources and the strategic advantage of proximity to multiple gas pipelines, LNG export infrastructure, and refineries in Queensland.
Strategic Positioning in the Taroom Trough
Elixir Energy is the largest acreage holder in the Taroom Trough within Queensland’s Bowen Basin, a multi-TCF Basin Centred Gas Play. The company’s assets border Shell’s primary area of operations, and the region benefits from established infrastructure and access to domestic and export markets. The recent completion of the Teelba seismic survey further supports resource definition efforts in the western Taroom Trough, complementing the ongoing appraisal activities at Lorelle-3 and Lorelle-3H.
In a broader market context, this feasibility study and upcoming flow testing represent important milestones in Elixir’s efforts to advance its Taroom Trough gas resources towards commercialisation. The outcomes will inform joint venture decisions, including those involving Santos, which holds a 50% interest and operates the permit ATP2056 where Lorelle-3H is located.
Elixir’s recent progress, including the successful drilling and appraisal plans at Lorelle-3 and the completion of the Teelba seismic survey, underscores the company’s advancing position in the Queensland gas sector.
Bottom Line?
The feasibility study and upcoming flow tests will be key to determining Elixir’s pathway to commercialising its Taroom Trough gas and condensate resources.
Questions in the middle?
- Which pipeline route will the feasibility study ultimately recommend for connecting to Wallumbilla Gas Hub?
- How will the results of the Lorelle-3H flow test influence Elixir’s reserves booking and development timeline?
- What are the potential market implications for Queensland’s gas and condensate supply if Elixir’s project advances?