Elixir Energy says Lorrelle-3 testing proof Taroom Trough is globally significant

• Successfully completed first phase of Lorrelle-3 flow testing
• Initial clean up flows compare favourably with adjacent and nearby offset wells at the same stage
• Excellent gas composition with negligible impurity requiring nil processing with a high energy/sales conversion factor
• Key objectives met and significant IP developed

Elixir Energy (ASX:EXR) has reported that early results from flow testing at the Lorelle-3 appraisal well has confirmed that Queensland’s Taroom Trough is a globally significant development opportunity.

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“It is a pleasure to announce positive initial results from the Lorelle-3H clean-up and flow testing, from what has been a monumental effort over the past 16 months by Elixir’s team,” MD and CEO, Stuart Nicholls, said.

“We have been able to make significant advancements on our neighbouring results in terms of extending the play northward, completion integrity and initial productivity.

“Lorelle-3H is only the fifth horizontal well drilled in the exciting Taroom Trough but is already demonstrating a globally significant opportunity to develop a major gas and oil resource right next to three operating LNG facilities and the nation’s wholesale gas trading point.

“Lorelle-3H is more than a proof of concept and now provides a potential pathway to our first Reserves and subsequent development.”

Lorelle-3H has produced at peak rates of 10.4 million standard cubic feet per day (mmscfd) with 10 barrels per day (bblsd) of high-valiue light oil/condensate.

Flow rates are expected to increase significantly after clean up.

Notably the gas produced is of an excellent quality with only 1.0% CO2 and notably included 10% ethane and 4.0% propane resulting in a high energy / sales conversion factor.

Elixir told shareholders that future development wells of 2,000m length may deliver equivalent peak sales gas rates of 15 terajoules per day based on the L3H flow test and stabilised rates of six TJd which indicates just how impactful the L3H well results are.

Elixir intends to undertake a 60-day soak on the Lorelle-3H well before retesting the well at the start of October 2026 to observe comparative performance. This test will also provide valuable information required for development planning for any future pilot or production opportunities given the ‘ready for production’ nature of the Lorelle-3H well.

Mr Nicholls said soak time may be a critical step in maximising the productivity and recoverability of the oil and gas in place within the Dunk reservoir.

EXR was down 18.7% to 6.1¢ with a Mkt cap of $140.1M.

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