Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) says mobilisation of the Helmerich & Payne (H&P) FlexRig 3 (Rig 648) has started, with the unit moving from Brisbane to the Lorelle-3 appraisal well location in Queensland’s Taroom Trough.
Procurement and preparatory works for the Lorelle-3 campaign in ATP2056 have been completed, allowing H&P to begin mobilisation of the Shell-imported rig to site.
Mobilisation is expected to take about two weeks, with spud planned shortly after the rig is accepted.
Lorelle-3 (ATP2056) is a 50:50 joint venture between Elixir (operator of the appraisal well) and Strike Energy Ltd (ASX:STX), which will become operator of the permit following the Lorelle-3 campaign.
2-phase drilling plan targets Tinowon ‘Dunk’ sands
The well will be drilled in two phases, beginning with a vertical pilot hole to around 3,600 m total vertical depth to gather core and logs as part of an expanded evaluation program across multiple Permian sandstone targets within the Taroom Trough basin-centred gas play in the Bowen Basin.
Elixir said the primary target is the Dunk member of the Tinowon Sands, with secondary targets including the Overston and Lorelle sandstones.
Following total depth, the company plans to immediately commence the second phase, drilling at least a 1,000 m horizontal sidetrack into the primary target before casing and suspending the well ahead of stimulation and production testing.
Elixir estimates the two drilling operations will take about 55 days to complete from the start of mobilisation.
Data and core collected during the evaluation program will then feed into laboratory work intended to support stimulation design and execution, with Elixir aiming to undertake multi-stage fracture stimulation and a production test at Lorelle-3 before June 2026.
The company said the sidetrack and flow test is designed to demonstrate commercial flow rates of gas and condensate and support a potential maiden reserve conversion from the underlying resource.
Elixir noted qualifying Lorelle-3 appraisal well costs — including drilling, coring, logging, analysis, completion, stimulation and testing — are eligible for a refund of up to 48.5% via the federal government’s R&D Tax Incentive and tax return processes.
Elixir described Lorelle-3 as a “high impact” Taroom Trough well for 2026, citing its proximity (around 10km) to Shell’s Dunk-1 well, which it said represents the best penetration of the Tinowon ‘Dunk’ sands to date, and noting Lorelle-3 will be the first well outside Shell acreage drilled on the upper western flank of the trough.