Elixir Energy Launches Stimulation at Lorelle-3H Well Targeting Commercial Gas Flow

Diagnostic Fracture Injection Test Initiates Stimulation Campaign

Elixir Energy (ASX:EXR) has commenced the critical Diagnostic Fracture Injection Test (DFIT) at its Lorelle-3H appraisal well in Queensland’s Taroom Trough, marking the start of a multi-stage stimulation and testing program. The DFIT, running from June 4 to 6, is designed to accurately measure reservoir pressures within the Tinowon ‘Dunk’ Sandstone and gather essential data to refine the upcoming 11-stage fracture stimulation.

Comprehensive 11-Stage Stimulation Planned Using 6 Million Pounds of Proppant

Following the DFIT, Elixir will deploy an 11-stage stimulation pumping 6 million pounds (approximately 2,720 tonnes) of proppant into over 1,000 metres of net gas-condensate pay. This design, developed with industry leaders Haliburton, SLB, and Corelab, reflects extensive laboratory and petrophysical analysis from core samples taken during the drilling of Lorelle-3 and 3H. The stimulation phase is slated to begin mid-June, immediately followed by a 3-5 day flow-back period to monitor well behaviour and flowing conditions.

Testing Phase to Deliver IP30 Production Curve by July End

Once stimulation and flow-back are complete, a workover rig will install a tubing string to optimise fluid velocity and pressure management before official production testing begins in late June. Supported by SLB and EnServe, the testing program aims to produce a high-quality IP30 production curve by the end of July. This data set is crucial to demonstrate commercial flow rates of gas and condensate and underpin future development plans for the basin-centred gas play.

Lorelle-3H Well Represents Significant Basin-Centred Gas Opportunity

Drilled in two phases, Lorelle-3H features a 1,157-metre horizontal sidetrack targeting the Tinowon ‘Dunk’ Sandstone, with net gas-condensate pay measured at 1,033 metres exhibiting porosities averaging 11.2%, peaking at 18%. The well’s data supports Elixir’s strategy to convert its substantial contingent gas resources into reserves, potentially unlocking commercial development. The project benefits from a federal Research and Development Tax Incentive, allowing up to a 48.5% refund on qualifying well activities.

Strategic Positioning in Queensland’s Taroom Trough

Elixir holds a commanding acreage position in the Taroom Trough within the Bowen Basin, adjacent to Shell’s primary operations. The basin-centred gas play is advantaged by proximity to the Wallumbilla Gas Hub, multiple pipelines, and LNG export infrastructure. The ongoing stimulation and testing at Lorelle-3H follow recent positive developments at the nearby Diona-1 well, where Elixir confirmed recoverable overpressured gas and condensate, further validating the region’s potential.