Elixir Energy Reports Initial Gas Flow From Diona-1 Well

Diona-1 Well Shows Early Gas Flow With Clean-Up Underway

Elixir Energy Limited (ASX:EXR) has announced that its Diona-1 exploration well in Queensland’s Surat-Bowen Basin has successfully completed stimulation and is currently flowing gas, condensate, and stimulation fluids at a flowing tubing head pressure (FTHP) of 735 psig through a 20/64th choke. The well is in the flow-back and clean-up phase, with the production stream initially bypassing measurement equipment as fluids are unloaded.

This marks a significant operational milestone following the completion of stimulation across the Permian net gas pay zone. The workover rig has been demobilised, and well testing equipment is now rigged up, enabling the transition to the next phase of flow testing once gas and condensate dominate the production stream. At that point, multi-rate and pressure monitoring will commence to better understand reservoir performance and production potential.

Strategic Location Offers Swift Path to Market

Diona-1 is situated between the Silver Springs Gas Plant and the Waggamba gas field, immediately adjacent to the Waggamba to Silver Springs gas pipeline. This proximity, less than 100 metres from the well pad and about 1,000 metres from the above-ground tie-in point, provides a potentially rapid route to commercialisation if flow testing confirms sustained production. The pipeline connects to the Wallumbilla Gas Hub, the eastern seaboard’s spot pricing point for gas sales, underscoring the strategic advantage of the location.

Elixir holds a 49% interest in the ATP2077 Diona sub-block joint venture, with Xstate Resources Limited (ASX:XST) holding the remaining 51%. Elixir was fully carried for the drilling of Diona-1 under the 2025 transaction with Xstate. This update follows earlier reports of positive gas indications and completion progress at Diona-1, building on the company’s efforts to unlock the Taroom Trough’s gas resources positive gas signs and fracture stimulation underway.

Taroom Trough Positioned for Growth Amid Infrastructure Access

Elixir Energy is the largest acreage holder in the Taroom Trough, a region benefiting from mature onshore gas infrastructure, including multiple pipelines, LNG export facilities, and refineries. The company’s broader portfolio includes the Lorelle-3/3H appraisal well, which recently completed drilling with significant gas-condensate pay and is scheduled for production testing later this year. This well is part of the company’s strategy to expand its resource base and commercial footprint in Queensland’s Bowen Basin record lateral well.

The Diona-1 flow testing results will be critical in defining the well’s commercial viability and informing development plans. While initial gas flow is encouraging, the company has not yet provided specific production guidance or reserve upgrades pending the completion of multi-rate testing and pressure monitoring. Investors will be watching closely as Elixir progresses through these operational milestones.