Elixir Energy Commences Stimulation and Testing Phase at Lorelle-3H Appraisal Well

Why It Matters

Demonstrating commercial‑scale flow from Lorelle‑3H would validate Elixir’s 3.5 tcf of contingent gas resources and accelerate development in Australia’s fast‑growing on‑shore gas market.

Key Takeaways

• DFIT will measure reservoir pressure in Tinowon “Dunk” Sandstone
• 11‑stage stimulation uses six million pounds of proppant
• Expected IP30 curve aims to prove commercial flow rates
• Elixir holds ~3.5 tcf of 2C contingent gas resources
• Location near Wallumbilla Hub enables fast pipeline access

Pulse Analysis

Elixir Energy’s latest appraisal well, Lorelle‑3H, sits at the heart of Queensland’s Taroom Trough, a multi‑trillion‑cubic‑foot basin‑centred gas play that has attracted growing interest from both domestic and export‑focused developers. As the largest acreage holder in the trough, Elixir is strategically positioned near the Wallumbilla Gas Hub and existing LNG export infrastructure, giving it a logistical edge for rapid market entry. The upcoming DFIT and 11‑stage hydraulic fracturing campaign are designed to unlock the Tinowon “Dunk” Sandstone, a formation with porosity up to 18 % that could sustain significant gas‑condensate flow.

The technical plan leverages extensive core and petrophysical data gathered from the earlier Lorelle‑3 well, allowing Halliburton and partners to fine‑tune a multi‑stage stimulation that will place six million pounds of proppant across more than a kilometre of net pay. By targeting an IP30 production curve, Elixir aims to demonstrate that horizontal wells can deliver commercial‑grade rates, a critical proof point for converting its 3.5 tcf of 2C contingent resources into reserve‑grade assets. The flow‑back period, expected to last three to five days, will provide real‑time data on gas‑condensate ratios, pressures and temperatures, feeding directly into reservoir models and future field development plans.

If the test meets its targets, Elixir could fast‑track a maiden commercial development, bolstering Australia’s on‑shore gas supply and feeding downstream LNG projects. The successful appraisal would also signal to investors that the Taroom Trough can host economically viable horizontal wells, potentially unlocking further capital for adjacent acreage owners. In a market where energy security and export capacity are paramount, Elixir’s progress at Lorelle‑3H may become a benchmark for the next wave of Australian gas exploration.