Elixir Energy Confirms Substantial Gas-Condensate Pay in Lorelle-3H Ahead of June Testing

Why It Matters

The results position Elixir to book its first 2P reserves in the Taroom Trough, unlocking value for shareholders and advancing Australia’s domestic gas supply pipeline.

Key Takeaways

• Lorelle-3H logged 1,033 m net gas-condensate pay in Tinowon “Dunk” Sandstone.
• Stimulation contract awarded to Halliburton; testing by Enserve/SLB in June 2026.
• Teelba 2D seismic completed, supporting potential 2C contingent resource in ATP2057.
• Elixir holds $22.3 M liquidity, fully funds 2026 program.
• APA Group study evaluates pipeline to Wallumbilla Hub for Taroom Trough gas.

Pulse Analysis

Elixir Energy’s recent appraisal of the Lorelle‑3H well marks a pivotal moment for the Taroom Trough, a frontier gas‑condensate province in Queensland. The well’s 1,033 m of net pay, coupled with porosities up to 18 %, signals a high‑quality reservoir that could underpin the company’s maiden 2P reserve estimate. In the broader Australian energy landscape, such discoveries are critical as the nation seeks to augment domestic gas production and reduce reliance on imports.

The upcoming stimulation and production testing, scheduled for June 2026, will be executed by Halliburton with Enserve/SLB handling integrated services. This partnership brings world‑class expertise to unlock flow rates and pressure data essential for reserve certification. Simultaneously, Elixir’s Diona‑1 well is slated for a three‑stage stimulation in April, reinforcing the company’s aggressive 2026 development timeline. With $22.3 million in cash and an undrawn $8.05 million R&D facility, Elixir confirms it is fully funded to pursue these milestones without dilutive financing.

Beyond drilling, Elixir is de‑risking the commercial pathway for its gas. The completed 225 km Teelba 2D seismic survey aligns with the Permian package, strengthening the geological case for additional contingent resources in ATP2057. An early works agreement with APA Group is now evaluating a pipeline route to the Wallumbilla Gas Hub, a critical step toward market access and revenue generation. Together, these technical and commercial advances position Elixir to transition from exploration success to a sustainable production platform, a narrative that resonates with investors focused on energy security and growth.