Elixir Energy’s Lorelle-3H Well Signals Strong Transition to Gas Production

Lorelle-3H Well Moves Into Gas Flow Phase

Elixir Energy Limited (ASX:EXR) has reported that its Lorelle-3H appraisal well in the Taroom Trough of Queensland has successfully transitioned from flowback of stimulation fluids to sustained gas flow. After milling out the stage plugs from a 12-stage fracture stimulation, the well commenced a controlled drawdown on 29 June 2026, adhering to best practice bottom hole pressure reductions of around 400 psi per day. Within five days, the well registered a sustained gas breakthrough, with gas rates and wellhead pressures steadily increasing, signalling encouraging early productivity.

Flowback and Pressure Trends Indicate Positive Reservoir Response

Initial flowback returned clean stimulation fluid without solids, confirming the effectiveness of the stimulation and that fracture stages are settling as intended. Gas breakthrough occurred at a bottom hole pressure of 6,300 psi, just slightly below the reservoir pressure of 6,350 psi. Wellhead pressure began near 3,200 psi with fluid flow rates around 1,600 barrels per day, declining to approximately 800 barrels per day as gas flow increased. Notably, wellhead pressure has since reversed its decline and is rising, currently measured at 1,770 psi, consistent with the transition from fluid to gas as the dominant production phase.

Upcoming Production Testing to Confirm Commercial Potential

Elixir plans to continue flowback until the fluid-to-gas phase change is firmly established, at which point the choke will be gradually opened to initiate a gas-condensate production test throughout July. This test aims to capture peak gas-condensate rates and observe initial decline trends, critical metrics for assessing the well’s commercial viability. The results will also support potential maiden Reserve conversion of Elixir’s substantial contingent resources within the Basin Centred Gas Play.

Strategic Significance of Lorelle-3H in Taroom Trough Development

Lorelle-3H represents a significant step for Elixir, being the first horizontal well tested outside Shell’s acreage in the Taroom Trough, located on the basin’s upper western flank. The well targets the Tinowon ‘Dunk’ Sandstone, where petrophysical data has revealed multiple thick gas and gas-condensate bearing reservoirs. This appraisal well’s positive early performance strengthens Elixir’s position in the region, which boasts approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources and benefits from proximity to key infrastructure including the Wallumbilla Gas Hub and LNG export facilities.

Financial Incentives and Project Outlook

The project qualifies for a substantial 48.5% refund on qualifying costs under the Federal Government’s Research and Development Tax Incentive, covering activities from drilling through to testing. While forward-looking statements are subject to usual uncertainties, the operational progress at Lorelle-3H lays the groundwork for forthcoming production data that will be pivotal in determining the commercial trajectory of Elixir’s Taroom Trough assets.