Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has taken a step toward commercialising gas from its northern Taroom Trough acreage after signing an agreement with APA Group to complete feasibility work on the most cost-effective route to the Wallumbilla Gas Hub in Queensland.
The Early Works Agreement is aimed at identifying the fastest and most economic pathway for gas from a notional 40-terajoule-a-day Lorelle pilot project to reach Wallumbilla, a key wholesale trading and pipeline interconnection point linking gas from the Surat and Bowen basins with east coast domestic markets and LNG export infrastructure.
For Elixir, completion of the feasibility work is expected to do more than narrow down pipeline options. It is set to provide an early development blueprint for bringing Taroom Trough gas into the market, including a Class V capital estimate and Level 1 schedule that would support entry into pre-FEED.
The study will assess two potential routes from the Lorelle-3H location in ATP 2056: a pipeline about 25 kilometres north to the Roma to Brisbane Pipeline or a longer 50-kilometre route northwest directly to Wallumbilla. It will compare capital and operating costs, approvals requirements and timing to serviceability before selecting a preferred concept.
Route clarity supports reserves and liquids upside
That outcome is significant because it gives Elixir greater clarity around how a future gas project could be developed and timed. It also feeds into the company’s assessment of a potential reserves booking following flow testing at the Lorelle-3H appraisal well, which is scheduled to begin in June 2026.
Just as importantly, defining a gas sales route could accelerate access to the liquids value within the Taroom Trough project. Elixir expects the Lorelle pilot to also produce associated condensate and light oil, which may be sold into Queensland’s refining market under a separate path-to-market and plant study.
The feasibility program is expected to be completed in about 12 weeks.
While any eventual development outcome will remain subject to processes within the ATP 2056 joint venture, where Santos holds a 50% working interest and is operator, the agreement with APA marks an early but practical step in moving Elixir from appraisal toward project planning and market access.
Elixir wraps up Teelba 2D seismic survey
Elixir has been prolific in its work in the Taroom Trough, recently wrapping up its Teelba 2D seismic survey at ATP 2057 in Queensland’s Taroom Trough, completing the program on time and within budget.
The company acquired 225 kilometres of modern high-resolution 2D seismic across what it considers some of the most prospective acreage on the western side of the Taroom Trough, an area that sits on trend with the Lorelle-3 and Lorelle-3H appraisal well.
Of the total data collected, about 205.4 kilometres was acquired within the permit area, with a further 19.3 kilometres gathered outside the block to help image subsurface structures in ATP 2057 and tie the lines into nearby wells or existing seismic volumes.
The survey was concentrated on the western side of the Taroom Trough, directly south of Shell’s permit and main investment area. According to Elixir, the seismic also covers the same Permian hydrocarbon-bearing reservoir package encountered at Lorelle-3 and Lorelle-3H.
Just a few weeks ago, the company delivered strong drilling results from its Lorelle-3H appraisal well in Queensland’s Taroom Trough, identifying more than 1,000 metres of net gas-condensate pay in what it says is the basin’s longest lateral drilled to date.
The well returned 1,033 metres of high-quality net gas pay within the Tinowon Dunk Sandstone, supporting the strength of the reservoir and further underpinning the prospectivity of its acreage in the Bowen Basin.