Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has drilled the Lorelle-3 appraisal well to the planned intermediate section depth of 2,320 metres measured depth below rotary table (MDRT) in ATP2056 in Queensland’s Taroom Trough and has started running casing.
The company has already drilled the 17-1/2” top hole, then set and cemented 13-3/8” casing at 682 m MDRT. After installing and testing well control equipment, Elixir drilled ahead in the 12-1/4” intermediate hole section to 2,320 m MDRT.
Elixir said 9-5/8” casing is currently being run into the intermediate section and will be cemented in place.
Following intermediate casing and cementing, Elixir plans to start drilling the reservoir section of Lorelle-3, using logging-while-drilling (LWD) tools to help reach and identify the primary target zone — the Dunk member of the Tinowon Sandstone.
Elixir expects to pull out the drilling assembly after identifying the primary target and then begin coring operations. It then plans to run back in hole, drill the Lorelle-3 pilot to final target depth and complete wireline logging.
About Lorelle-3
Lorelle-3 (L3) is being drilled in two phases. The initial pilot hole is planned to reach a total vertical depth (TVD) of 3,600 metres, with coring and logging across multiple Permian sandstone targets within the Basin-Centred Gas Play of the Taroom Trough (Bowen Basin).
Elixir holds 50% and is operator of the Lorelle-3 appraisal well, with Santos Ltd (ASX:STO) holding 50% and set to become operator of the permit after the well.
The primary target is the Dunk member of the Tinowon Sands, with secondary targets including the Overston and Lorelle Sandstones in the Back Creek Group and potential reservoirs within the Kianga Group.
Once target depth is reached, Elixir plans to move into phase 2, which includes drilling at least a 1,000-metre horizontal sidetrack into the primary target. The sidetrack is expected to be cased and suspended for later stimulation and production testing.
Elixir said it aims to complete a multi-stage fracture stimulation and production test at Lorelle-3 before June 2026 as it seeks to demonstrate commercial flow rates of gas and condensate and support a potential maiden reserve conversion of its underlying resource.
The company also noted Lorelle-3 has qualified for an Advanced Finding under the Federal Government’s R&D Tax Incentive and said eligible well costs may attract a refund of up to 48.5% through the tax return process.
Elixir described Lorelle-3 as a high-impact well for the Taroom Trough in 2026, noting it is being drilled and tested around 10 km from Shell’s Dunk-1 well, which it called the best penetration of the Tinowon “Dunk” sands in the area.