Elixir Energy Boosts Lorelle-3H Stimulation Stages After Strong DFIT Results

Key Pressure Test Validates Reservoir Expectations

Elixir Energy Limited (ASX:EXR) has completed the Diagnostic Fracture Injection Test (DFIT) at the toe of its Lorelle-3H appraisal well in Queensland’s Taroom Trough, delivering encouraging reservoir pressure data. The test recorded a preliminary reservoir pressure of approximately 6,350 psi, consistent with an overpressured gas gradient of about 0.6 psi per foot, aligning with regional expectations.

Of particular note, the closure pressure measured at 8,759 psi within the Tinowon ‘Dunk’ Sandstone formation suggests the induced hydraulic fractures can be effectively contained within the target reservoir. This outcome is better than anticipated and critical for optimising fracture stimulation by preventing fracture growth into surrounding rock layers.

Stimulation Program Expanded to Maximise Well Productivity

Following the positive DFIT results, Elixir has increased the number of stimulation stages from 11 to 12. The additional stage targets the toe section of the well, where the fracture quality observed during testing was strong. This expansion comes with only a minor incremental cost, thanks to proppant availability and operational efficiencies.

This adjustment is expected to enhance the modelled productivity of the well during the upcoming stimulation and flow testing phases. The company is currently mobilising and rigging up the necessary equipment, with stimulation operations scheduled to begin by the end of the week, maintaining the timeline set in earlier updates.

Lorelle-3H’s Strategic Significance in Taroom Trough

Lorelle-3H is a pivotal well for Elixir, marking the first horizontal well drilled and tested outside Shell’s primary acreage in the Taroom Trough. Located on the basin's upper western flank, the well targets the Tinowon ‘Dunk’ Sandstone, a key reservoir within the Basin Centred Gas Play.

The well’s drilling campaign included a 3,580m vertical pilot hole and a 1,157m horizontal sidetrack, which intersected multiple thick gas and gas-condensate bearing sandstone layers. Petrophysical data has surpassed initial expectations, revealing 148m of net gas-condensate pay, underpinning the resource's potential.

Elixir aims to demonstrate commercial flow rates of gas and condensate from Lorelle-3H to support a maiden reserve conversion of its approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources. The project benefits from a 48.5% refund on qualifying expenditure under the Federal Government’s Research and Development Tax Incentive.

Upcoming Stimulation and Testing Operations

With the DFIT data in hand, Elixir is advancing towards the stimulation phase, which involves injecting proppant to enhance reservoir permeability. The program’s timely commencement is crucial for validating the commercial viability of the Taroom Trough gas play.

The results from Lorelle-3H will be closely watched as they have the potential to confirm the value and scale of Elixir’s acreage, which neighbours Shell’s established operations. The well’s success could accelerate development plans and reinforce the Taroom Trough’s standing as a significant gas resource within Queensland’s Bowen Basin.