Elixir Energy wraps Lorelle-3H frack, gas test next

Elixir Energy (ASX:EXR) finished the 12-stage fracture stimulation on its Lorelle-3H appraisal well in Queensland's Taroom Trough, setting up a production test that will decide whether the basin's northern extension can flow commercial gas and condensate.

Halliburton ran the job. All proppant placed inside the target Tinowon 'Dunk' Sandstone, with fall-off pressure tests confirming the permeability pathway. Pressure responses along the 1,033-metre horizontal section were consistent and matched expectations, the company said.

CEO Stuart Nicholls called Lorelle-3 a watershed moment for the Taroom Trough. It is the first horizontal well drilled and tested outside Shell's acreage on the trough's upper western flank. The results so far validate the quality of Elixir's position – the company holds the largest acreage block in the trough, a multi-trillion-cubic-foot gas play that the Queensland government has flagged as critical for the East Coast supply gap.

The upcoming flow test will target rates and pressures from the stimulated horizontal section. It will also measure gas-to-condensate ratios, composition, and downhole conditions to feed into development planning.

Lorelle sits in licence ATP2056. Elixir holds 50% and operates; Santos holds the other 50% and will take over operatorship later.

Elixir's EXR stock page tracks the stock.