Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has reported strong drilling results from its Lorelle-3H appraisal well in Queensland’s Taroom Trough, recording more than 1,000 metres of net gas-condensate pay in what the company says is the longest lateral drilled in the basin to date.
The ASX-listed gas explorer said the well intersected 1,033 metres of high-quality net gas pay within the Tinowon ‘Dunk’ Sandstone, confirming strong reservoir characteristics and reinforcing the prospectivity of its acreage position in the Bowen Basin.
The well has now been drilled, cased and cemented to a total depth of 4,477 metres, including a 1,157-metre horizontal section that remained entirely within the primary reservoir target.
Elixir managing director and chief executive officer Stuart Nicholls described the results as an “exceptional outcome” for the company’s appraisal program.
Strong reservoir characteristics confirmed
According to Elixir, logging-while-drilling data revealed reservoir quality significantly better than previously observed in the initial pilot hole, with average porosity of 11.2% and peak porosity reaching 18%.
Elevated mud gas readings were recorded throughout the horizontal section, supporting the interpretation that the Tinowon Dunk reservoir units are laterally continuous and more homogeneous than earlier geological models suggested.
The company believes these results improve confidence in the broader basin model and support the potential for future long-reach development wells across the Taroom Trough.
The Lorelle-3 program was completed in two phases. The initial vertical pilot hole was drilled to 3,580 metres total vertical depth, collecting core and logging data across several Permian sandstone reservoirs.
These early results already indicated multiple thick gas and gas-condensate bearing intervals, leading Elixir to drill the horizontal sidetrack targeting the Tinowon Dunk Sandstone.
In total, the drilling campaign completed 5,691 metres of drilling and appraisal work across the pilot hole and lateral well in just 46 days.
Production test planned in 2026
With drilling complete, the Lorelle-3H well has been suspended ahead of a multi-stage fracture stimulation program and 30-day production test scheduled for the second quarter of 2026.
The stimulation design will incorporate data gathered from the expanded coring and logging program undertaken during drilling, with the aim of optimising production rates and resource recovery.
Elixir said the test could represent a pivotal step for development of the Taroom Trough basin-centred gas play.
“A multi-stage fracture stimulation and 30-day production test is now planned for the Lorelle-3H well in the second quarter, delivering results that may underpin Elixir’s move towards its maiden Reserves booking in the Taroom Trough and the next phase of basin development,” Nicholls said.
Strategic position in the Taroom Trough
Elixir holds a significant acreage position in the Taroom Trough within Queensland’s Bowen Basin, where it is targeting a basin-centred gas play with around 2.8 trillion cubic feet of independently certified contingent gas resources.
The Lorelle-3 well sits within the ATP2056 permit, where Elixir holds a 50% working interest and operates the appraisal well. Santos holds the remaining stake and will operate the broader permit after the current phase.
The project area is located close to established gas infrastructure including the Wallumbilla Gas Hub, major pipelines and LNG export facilities along Australia’s east coast.
Elixir said the Lorelle-3H results demonstrate the value and scale potential of its Taroom Trough acreage, which lies adjacent to acreage operated by major energy companies already active in the basin.
The company is also progressing other exploration activities in the basin, including the recently mobilised 200-kilometre Teelba seismic campaign across its ATP2057 permit to further refine subsurface targets.
