Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has locked in a drilling rig for its high-impact Lorelle-3 appraisal well in ATP2056, in Queensland’s Taroom Trough. The rig will be mobilised to the Lorelle-3 well site from January 12, 2026, with spudding of the well expected shortly thereafter.
The contract is with Helmerich & Payne (H&P) for the use of the FlexRig 3 MM 648, which was recently imported by Shell for its own Taroom Trough appraisal campaign.
A similar H&P rig previously deployed by Tamboran Resources in the Beetaloo Sub-basin has delivered material gains in drilling efficiency and execution.
“Elixir is all set to drill the high-impact Lorelle-3 appraisal well. As per our strategy of being a fast follower, we are drilling into the same reservoirs as Shell, on the boundary of Shell’s primary area of operations and using Shell’s specifically imported equipment. Lorelle-3 may be a defining well in the evolution of the exciting Taroom Trough,” Elixir Energy’s managing director and CEO Stuart Nicholls said.
On-the-ground works are advancing, with civils, site preparation and well pad construction underway and about 30% complete. Elixir reports that all other long-lead items for Lorelle-3 have now been secured as it continues preparation and procurement for the appraisal well.
Rapidly advancing
Lorelle-3, to be drilled in ATP2056, is planned as a 3,600-metre appraisal well targeting multiple Permian sandstone intervals within the Basin-Centred Gas Play. Elixir holds 50% and will operate the Lorelle-3 well, alongside 50% partner Santos Ltd, which will assume operatorship of the permit thereafter. The program includes core acquisition, detailed logging and an expanded evaluation suite across key reservoir horizons.
Qualifying Lorelle-3 appraisal activities — including drilling, coring, logging, analysis, completion and testing — are expected to attract a refund of up to 48.5% of eligible costs under the Federal Government’s Research and Development Tax Incentive and through standard tax return processes.
The well is shaping as one of the highest-impact Taroom Trough holes planned for 2026. It will be drilled and tested about 10 kilometres from Shell’s Dunk-1, the best penetration to date of the Tinowon “Dunk” Sands in the Taroom Trough. Lorelle-3 will also be the first well drilled outside Shell’s acreage on the upper western flank of the trough.
On successful logging and testing, the well is expected to provide a key validation of the Shell-like quality of Elixir’s adjoining acreage.