Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has completed stimulation of the Diona-1 exploration well in Queensland’s Surat-Bowen Basin, with positive indications observed during operations.
The company, which operates and holds 49% of the ATP2077 Diona sub-block joint venture alongside Xstate Resources Ltd (51%), said all target zones in the well had been successfully stimulated after rigging up the fracture stimulation spread.
Equipment has now been demobilised, with milling and completion operations underway ahead of planned flow testing.
Gas observed during flowback
During the post-stimulation flowback period, gas was observed alongside return fluids, a development Elixir said “bodes well” for the upcoming flow testing phase.
Coiled tubing operations are being finalised before the unit is demobilised and a workover rig is brought in to run the production completion.
Once the completion has been installed, flow testing and pressure monitoring will begin.
About Diona
Diona-1 was drilled under a 2025 transaction in which Elixir was fully carried by Xstate for drilling costs.
The well is between the Silver Springs Gas Plant and Waggamba gas field and is less than 100 metres from the Waggamba pipeline, with an above-ground tie-in point about 1,000 metres from the well pad.
Elixir said a successful test could support a rapid path to market, with the pipeline connecting through the Silver Springs Gas Plant to the Wallumbilla Gas Hub, the key spot pricing point for eastern seaboard gas sales.