Elixir Energy’s Lorelle-3H appraisal well in Queensland’s Taroom Trough has completed its initial clean-up phase, delivering promising dual phase flow rates and preparing for a critical tubing run to stabilise production before resuming testing.
- Lorelle-3H recovers 32% stimulation fluid during clean-up
- Dual phase flow rates reach 1,700 bbls/d fluid and 3 mmscfd gas
- No sand or proppant production observed, indicating fracture integrity
- Tubing installation planned to stabilise surging flows
- Gas and condensate samples sent for compositional analysis
Strong Early Flowback Signals Reservoir Connectivity
Elixir Energy Limited (ASX:EXR) has reported encouraging flow testing results from its Lorelle-3H well in the Taroom Trough, Queensland. The well has completed its initial clean-up phase, recovering approximately 32% of the stimulation fluids injected during fracture stimulation. This recovery rate is notably high compared to offset wells, indicating excellent connectivity with the reservoir.
During this phase, Lorelle-3H demonstrated dual phase production, flowing both gas and condensate alongside the stimulation fluids through the 4-1/2” casing. The well achieved fluid rates up to 1,700 barrels per day and gas rates reaching 3 million standard cubic feet per day (mmscfd), albeit during unstable flow conditions characterised by surging as different zones transitioned from fluid to gas-condensate production. Importantly, there was zero sand or proppant production, suggesting the fracture network remains intact and effective.
Tubing Installation to Manage Flow Instabilities
The company has decided to temporarily shut in the well to run a pre-prepared 2-3/8” tubing string aimed at pacifying the surging flows that have caused pressure fluctuations and instability. This tubing installation, expected to take up to seven days, will allow the well to be opened up beyond current choke settings and transition to a stable, uniform single phase flow. The shut-in period will also facilitate further soaking of stimulation fluids to enhance near-wellbore permeability, potentially boosting ultimate well productivity.
Field measurements have confirmed low impurity gas quality, with carbon dioxide levels below 1% and no hydrogen sulfide detected. Gas and condensate samples have been collected and sent for detailed laboratory compositional analysis, which will inform future development planning.
Significance for Taroom Trough Development
Lorelle-3H is a key appraisal well targeting the Tinowon ‘Dunk’ Sandstone within the ATP2056 permit, where Elixir holds a 50% interest and operatorship. The well was drilled in two phases, including a 1,157-metre horizontal sidetrack stimulated across 12 stages. The well’s petrophysical data revealed multiple thick gas and gas-condensate bearing zones with a net pay of 148 metres, exceeding initial expectations.
This well is the first horizontal well tested outside Shell’s acreage in the Taroom Trough and serves as a crucial step towards demonstrating commercial gas and condensate flow from the Basin Centred Gas Play. The results so far validate the quality and scale of Elixir’s position in the region, which is advantaged by proximity to major gas infrastructure and LNG export facilities.
The project benefits from federal government support, with up to 48.5% of qualifying costs eligible for refund under the Research and Development Tax Incentive program, reflecting the technical complexity and innovation involved.
Next Steps in Flow Testing and Analysis
Following the tubing installation, Elixir plans to recommence flow testing with the objective of maximising gas and condensate production rates. The ongoing testing will provide critical data on pressures, temperatures, and fluid compositions to underpin future reserve certification and development planning.
While the initial flowback results are promising, the company acknowledges the inherent uncertainties in appraisal activities. The upcoming flow testing phase will be closely watched for indications of sustained commercial production potential from the Taroom Trough’s Basin Centred Gas Play.
Bottom Line?
The tubing run and subsequent flow testing at Lorelle-3H will be pivotal in validating Elixir’s commercial gas-condensate potential in the Taroom Trough.
Questions in the middle?
- Will stable single phase flow confirm commercial production rates at Lorelle-3H?
- How will compositional analysis of gas and condensate influence development plans?
- What impact will these results have on Elixir’s reserve conversion and project timelines?