Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has drilled and cased the heel of its high-impact Lorelle-3H appraisal well in Queensland’s Taroom Trough, pushing through the overlying Wallabella coal and into the primary Tinowon “Dunk” Sandstone target.
Securing the heel with a cemented 7-inch liner represents a key interim milestone and a meaningful de-risking step ahead of the horizontal drilling phase, which is expected to begin imminently.
The update follows completion of the Lorelle-3 pilot hole evaluation program, after which Elixir set cement plugs and abandoned the pilot’s reservoir section before kicking off the planned sidetrack for the horizontal well. Drilling of the 8-1/2-inch directional hole section then resumed using a directional drilling bottom hole assembly, reaching the Dunk Sands at 3,319 metres' measured depth below rotary table.
Horizontal landing optimisation study
In parallel, services group SLB has completed a Horizontal Landing Optimisation Study for Lorelle-3H. Elixir said the work has been used to select the preferred zone within 28 metres of net pay in the Dunk Sands to place the horizontal wellbore, targeting improved stimulation effectiveness and reservoir drainage.
With the landing work complete, Elixir has started running into the hole with a 6-1/8-inch directional drilling bottom hole assembly and a full logging-while-drilling suite. The tools are expected to support geosteering through the optimised interval while also collecting reservoir parameters and hydrocarbon saturation data.
Elixir plans to drill more than 1,000 metres of horizontal wellbore before casing and cementing the section with 4-1/2-inch casing and has the money to do so. The well is then expected to be suspended ahead of a multi-stage fracture stimulation program and subsequent flow testing.