Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has reported initial results from wireline logging and an expanded evaluation campaign at its Lorelle-3 pilot well in ATP 2056 in Queensland’s Taroom Trough.
The program confirmed multiple hydrocarbon-bearing intervals across the Permian section, with a total of 148 metres of net pay identified across four reservoirs.
Wireline logging results included:
- Tinowon “Dunk” Sandstone: 28 metres net pay, with porosity up to 13%
- Lorelle Sandstone: 60 metres net pay, with porosity up to 14%
- Kianga Group sandstones: 59 metres net pay across six separate zones, with porosity up to 17%
- Overston Sandstone: 1 metre net pay, with porosity up to 9%
Summary of results.
Elixir said the Tinowon “Dunk” Sandstone — which it described as hosting an identified gas-condensate resource — has been confirmed as the target for planned horizontal drilling.
Operations are expected to begin immediately after the plug-back of the 8-1/2” hole section, the company added.
“The initial results from the Lorelle-3 pilot well reinforce Elixir’s position as a holder of some of the most prospective acreage in the increasingly exciting Taroom Trough, “ Elixir Energy managing director and CEO Stuart Nicholls said.
“Confirmation of the northward extension of the Dunk play, with both thickness and reservoir quality maintained beyond Shell’s core operating area, significantly enhances the company’s opportunity to demonstrate commercial gas and condensate flow rates from the Lorelle-3 horizontal section, with drilling scheduled to commence imminently.
“The strong upside delivered across the secondary targets represents an outstanding result for the company, with the Lorelle Sandstone coming in materially above expectations. The interval appears exceptionally thick, laterally consistent and heavily charged with dry gas, highlighting the scale and quality of the resource potential. These results are expected to underpin a recommendation for an accelerated follow-up appraisal program to unlock and test this significant gas opportunity, further enhancing the development potential of Elixir’s broader Taroom position.
“In the near term, our focus remains on executing the Dunk horizontal section, completing our R&D program to optimise multistage fracture stimulation design, and progressing the well through completion and flow testing over the coming months. Success in this program has the potential to support the maiden Reserve booking for both Elixir and the Taroom Trough, a significant milestone for the company and the play.”
Tinowon ‘Dunk’ Sandstone delivers condensate-rich gas pay
The top of the Tinowon ‘Dunk’ Sandstone, the well’s primary target, was intersected at 3,175 metres MDRT with a gross thickness of 56 metres. The reservoir comprises two sand packages of 21 metres and 32 metres, separated by a 2 metres coal seam interpreted to be laterally limited.
Petrophysical analysis indicates 28 metres of net pay with average porosity of 8% and peaks of 13%. Results from mud-gas ratios and NMR logs point to a condensate-rich gas system, supported by 18 metres of whole core recovered from the upper section, which displayed fluorescence in cuttings. The porosity and reservoir characteristics are consistent with Shell-operated wells to the south that have flowed significant volumes of gas and condensate.
Lorelle Sandstone shows strong dry gas potential
The secondary Lorelle Sandstone was encountered at 3,386 metres MDRT with a gross thickness of 125 metres. The interval recorded strong dry gas shows, confirmed by NMR logging, and contains 60 metres of net gas pay with average porosity of 7% and peaks of 14%.
The reservoir is described as exceptionally thick and relatively homogeneous, presenting a substantial appraisal opportunity. Multiple sidewall cores were collected, with observations noting visible porosity in parts of the formation.
Overston Sandstone adds further condensate upside
The Overston Sandstone, also a secondary target, was intersected at 3,284m MDRT with a gross thickness of 102 metres. The formation contains 1 metre of net pay with average porosity of 9%, with data indicating a gas condensate resource. Sidewall cores were obtained across the interval.
Kianga Group highlights additional liquids and gas potential
The Kianga Group, a tertiary target, was encountered at 2,917 metres MDRT and comprises six discrete zones ranging from 4 metres to 16 metres thick. The group hosts 59 metres of total net pay with average porosity of 9% and peaks of 17%, and is interpreted to contain gas condensate resources.
The interval includes the westerly equivalent of Omega Oil and Gas’ Canyon Sandstone, suggesting potential comparability. The stacked pay across multiple zones adds to the opportunity to aggregate a larger liquids-rich gas resource as part of a broader Taroom Trough development strategy.
Cut-offs applied in the petrophysical assessment are consistent with those used by Sproule-ERCE in its existing 2C contingent resource booking for ATP2056 and align with previous well disclosures. Results will be further refined through core calibration and additional processing.
Forward program targets horizontal test in 2026
With evaluation complete, Elixir will cement the 8.5-inch reservoir section of the Lorelle-3 pilot hole and conduct a blowout preventer test. The next phase will involve drilling a 1,000 metres-plus horizontal sidetrack into the Tinowon ‘Dunk’ reservoir, followed by casing installation ahead of a planned multi-stage stimulation and flow test in Q2 2026.