Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has started the next phase of work at its high-impact Lorelle-3H appraisal well in ATP2056 in Queensland’s Taroom Trough, with a Diagnostic Fracture Injection Test (DFIT) now underway.
The DFIT, being conducted with Halliburton at the toe end of the horizontal well, is designed to measure reservoir pressure in the Tinowon ‘Dunk’ Sandstone and gather data to support the final design of the multi-stage stimulation and testing program.
Lorelle-3H is targeting gas and condensate in the Tinowon ‘Dunk’ Sandstone, where Elixir has previously reported 1,033 metres of net gas-condensate pay with average porosity of 11.2% and peaks of up to 18%.
Stimulation program taking shape
R&D and technical design work with SLB, Corelab and Halliburton is largely complete, paving the way for an 11-stage fracture stimulation program.
Halliburton has been awarded an integrated services package for the stimulation, which is expected to deploy around six million pounds, or 2,720 tonnes, of proppant across the horizontal section.
Following stimulation, Elixir expects a 3-5-day flow-back period, during which well behaviour and flowing conditions will be monitored.
Subject to field conditions, the company then plans to mobilise a workover rig and install a 2-7/8 inch tubing string to support fluid velocity and manage bottom-hole pressures ahead of formal testing.
Focus on commercial flow data
The work is aimed at demonstrating whether gas and condensate can flow from multi-stage stimulated horizontal wells in the Tinowon ‘Dunk’ Sandstone at rates and pressures capable of supporting commercial development.
Elixir also aims to collect gas and condensate ratios, composition data, pressure, temperature and other flowing-condition measurements to support future development planning.
SLB and EnServe have designed the flow-back and testing plan, incorporating learnings from similar recent operations.
What comes next
Elixir’s indicative schedule has the DFIT running from June 4-6, 2026, followed by stimulation, flow-back and completion work from the end of the week beginning June 15.
Production testing is expected to begin toward the end of the week starting June 22, with an IP30 type curve targeted by the end of July.
The company said timing remains subject to operational conditions and constraints.
Lorelle-3H forms part of Elixir’s broader appraisal program in the Taroom Trough, where the company is targeting conversion of its independently certified contingent gas resources toward reserves.