Australia's Elixir Energy Begins Gas Production Transition at Lorelle-3H Well
2026-07-12 14:32
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en.Wedoany.com Reported - Elixir Energy has achieved sustained gas breakthrough at its Lorelle-3H well in the ATP2056 prospect within the Taroom Trough, Queensland, Australia — the phenomenon occurred five days after cleanup operations, and the well is currently transitioning from fluid production to natural gas production.

After completing mill-out operations following a 12-stage hydraulic fracturing stimulation, the company initiated a controlled pressure drawdown at a rate consistent with the maximum daily bottomhole pressure decline recommended by a recent SLB study. According to Elixir, initial fluid recovery rates fell within the expected range, with no solids detected during fracturing fluid flowback, indicating that the fracture stages performed as designed. The well was choked down using a 12/64-inch nozzle, with a stable gas flow measured at a bottomhole pressure of 6,300 psi — slightly below the reservoir pressure of 6,350 psi.

As the well transitions from a fluid-dominated to a gas-dominated production state, fluid rates decreased while gas rates increased, with wellhead pressure changes remaining within the company's expectations. Elixir's operational records show that wellhead pressure initially stood at approximately 3,200 psi with fluid production of about 1,600 barrels per day (bpd); it subsequently dropped to around 1,680 psi and 800 bpd; in the latest update, pressure rebounded to 1,770 psi, with natural gas production continuing to climb during the same period.

Condensate gas production testing is expected to commence shortly, with peak gas rates to be observed during sustained production testing in July.

The Lorelle-3/L3H appraisal well is operated by Elixir, with Santos holding a 50% interest and serving as the license operator thereafter. The well was drilled in two phases, targeting the Tinowon 'Dunk' sandstone, utilizing a 1,157-meter horizontal sidetrack, followed by casing and fracturing testing. The project qualifies for the federal government's Research and Development Tax Incentive program, with a maximum rebate of 48.5%. Elixir plans to use this well to assess the feasibility of commercial-scale natural gas and condensate production from the Tinowon 'Dunk' sandstone, measure composition, and provide preliminary support for potential future development.

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