Elixir Energy now in ‘key’ completion and testing phase at Lorelle-3H appraisal well

• Lorelle-3H stimulation, completion and testing to commence today.
• Diagnostic fracture injection test to measure reservoir pressure.
• Specially designed flow-back and testing plan in place.

Elixir Energy (ASX:EXR) has brought together a team of world-leading oilfield specialists as it prepares for a key phase of testing at the high-impact Lorelle-3H appraisal well in Queensland’s Taroom Trough.

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The Australian junior explorer, along with contractor Haliburton, will commence a diagnostic fracture injection (DFIT) procedure at the toe end of the Lorelle-3H well today.

The operation is designed to measure reservoir pressures of the targeted Tinowon ‘Dunk’ Sandstone and provide other critical information for the final design of the full multi-stage stimulation and testing phase of the operation.

MD and CEO, Stuart Nicholls, said Elixir has been working with industry experts Haliburton, SLB and Corelab to take the physical core and petrophysical data recovered from the Lorelle-3 and 3H wells to design an optimal fracture stimulation and production test under the company’s pre-approved R&D program.

This work has largely concluded, and Elixir has completed the resulting contracting, procurement and preparation for the stimulation completion and testing phase of the Lorelle- 3H well.

This phase has the primary objectives of proving that gas and condensate can be flowed at rates and pressures from multi- stage stimulated horizontal wells in the Tinowon ‘Dunk’ Sandstone to support a commercial development.

Haliburton has been awarded an integrated services package to deliver the proposed 11-stage (plus DFIT) stimulation, which will seek to deploy 2,720 tonnes of proppant into the 1,033m of good quality net gas- condensate pay measured in Lorelle-3H.

Post-pumping the 11-stage stimulation, a three to five-day flow back will occur, where well behaviour and flowing conditions will be monitored and measured.

Subject to in-field decisions and flowing conditions, Elixir will then mobilise a workover rig and run a 2-7/8” tubing string to support the velocity of the well fluids and to manage bottom hole pressures. Upon installation of the final installation, the well will be ready for official testing operations.

To date, Lorelle-3 has provided results above expectations and demonstrated multiple thick gas and gas-condensate bearing reservoirs as viable appraisal targets amongst the 148m of measured net gas- condensate pay.

EXR is steady at 10.5¢. Mkt cap $196.2M.

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