en.Wedoany.com Reported - Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has reported that key diagnostic test results from the Lorelle-3H appraisal well in the Taroom Trough, Queensland, show initial reservoir pressure in line with expectations, with the company planning to commence stimulation operations later this week.
A Diagnostic Fracture Injection Test (DFIT) conducted at the toe of Lorelle-3H measured an initial reservoir pressure of approximately 6,350 psi, consistent with regional data. This result indicates an overpressure gas gradient of approximately 0.6 psi/ft. Elixir Energy is mobilizing and installing stimulation and well testing equipment, with stimulation operations scheduled to begin around the end of this week as planned.
The DFIT also measured a closure pressure of 8,759 psi in the Tinowon 'Dunk' Sandstone. Closure pressure represents the minimum in-situ horizontal stress required to maintain an induced hydraulic fracture open. Elixir Energy stated that this result is better than expected, indicating that planned fractures can be contained within the target reservoir without connecting to overlying or underlying formations, which helps focus fracture energy on the target reservoir and maximize the effectiveness of the stimulation treatment.
Based on the DFIT results, Elixir Energy has increased the official number of planned stimulation stages for Lorelle-3H to 12. The company originally planned 11 stages using 6 million pounds of proppant, but the quality of the toe stage and lower incremental costs justified adding one stage. Elixir Energy stated that the additional stage is expected to improve the well's simulated production capacity during testing.
Lorelle-3H is part of the Lorelle-3 appraisal well in the ATP2056 permit block. Elixir Energy holds a 50% interest in the appraisal well and serves as operator, with Santos holding the remaining 50% interest and set to become operator of the permit block thereafter. The well was drilled in two phases: the pilot hole reached a total vertical depth of 3,580 meters, penetrating Permian sandstone reservoirs in the Taroom Trough within the Bowen Basin, with core and log data collected. Early petrophysical results exceeded expectations, revealing multiple thick gas and condensate-bearing reservoirs with a measured net condensate gas pay of 148 meters. The second phase involved drilling a 1,157-meter horizontal lateral well in the primary target Tinowon 'Dunk' Sandstone, with a measured depth of 3,332 meters below the rotary table. The horizontal well has been cased and suspended, awaiting stimulation and production testing.
Elixir Energy stated that the horizontal well and flow testing aim to demonstrate commercial flow rates of natural gas and condensate from the Basin Centred Gas Play. Successful results could support the first reserve conversion from the company's existing resource base. The company described Lorelle-3H as the first horizontal well drilled and tested on the upper western flank of the Taroom Trough, outside the Shell block.
Elixir Energy is the largest acreage holder in the Taroom Trough, targeting the assessment of approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources. The project is located near the Wallumbilla gas hub, multiple natural gas pipelines, LNG export infrastructure, and Queensland's mature onshore natural gas industry. The Taroom Trough is a multi-trillion cubic foot basin-centered gas play, with advantages including proximity to multiple natural gas pipelines, nearby LNG export infrastructure with an annual capacity of 25 million tonnes, several operating refineries, and Queensland's mature and well-serviced onshore natural gas industry.
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