Elixir Energy continues to achieve highlights at Lorrelle-3

Elixir Energy (ASX:EXR) has confirmed four material hydrocarbon-bearing reservoirs, totalling up to 148 metres of net pay, in the Lorelle-3 well in Queensland’s Taroom Trough.

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Week 8’s positive results were identified from the initial wireline and expanded evaluation campaign at the pilot well in permit ATP2056. The Tinowon ‘Dunk’ Sandstone reservoir, which hosts an identified gas-condensate resource, has now been confirmed as the target for horizontal drilling.

“The initial results from the Lorelle-3 pilot well reinforce Elixir’s position as a holder of some of the most prospective acreage in the increasingly exciting Taroom Trough,” Elixir MD and CEO, Stuart Nicholls, explained.

“Confirmation of the northward extension of the Dunk play, with both thickness and reservoir quality maintained beyond Shell’s core operating area, significantly enhances the opportunity to demonstrate commercial gas and condensate flow rates from the Lorelle-3 horizontal section, with drilling to commence imminently.”

The Tinowon ‘Dunk’ Sandstone is reportedly the same reservoir that energy giant Shell has identified in its Taroom Trough exploration.

Mr Nicholls also noted that Lorelle-3 had intersected other important reservoirs.

“The strong upside delivered across the secondary targets represents an outstanding result for the company, with the Lorelle sandstone coming in materially above expectations,” he told shareholders today.

“The interval appears exceptionally thick, laterally consistent and heavily charged with dry gas, highlighting the scale and quality of the resource potential. These results are expected to underpin a recommendation for an accelerated follow-up appraisal program to unlock and test this significant gas opportunity, further enhancing the development potential of Elixir’s broader Taroom position.”

Mr Nicholls said Elixir will now focus on executing the Dunk horizontal section, completing an R&D program to optimise multistage fracture stimulation and progressing the well through completion and flow testing.

“Success has the potential to support the maiden reserve booking for both Elixir and the Taroom Trough, a significant milestone for the company and the play.”

EXR was up +8.99%, to 9.7c, up to Thursday’s close.

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