Elixir Energy to increase Lorelle-3H fracture plans after better than expected testing results

• Lorelle-3H DFIT successfully completed with preliminary reservoir pressure meeting expectations.
• Better than expected closure-pressure results leads to increase in planned induced fractures.
• Stimulation stages now increased to 12 with the toe being included in the program
• Mobilisation and rigging up of stimulation and well testing equipment underway

Elixir Energy (ASX:EXR) has achieved a key milestone in its testing of the high impat Lorelle-3H (L3H) appraisal well within Queensland’s Taroom Trough. The company has successfully completed a diagnostic fracture injection test (DFIT) at the toe end of the well, and initial pressure monitoring indicates a preliminary reservoir pressure as per expectations.

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As part of the other suite of critical data collected during the DFIT operations recently, closure pressure was measured for the Tinowon Dunk Sandstone at up to 8,759 psi, a better-than-expected outcome.

This, Elixir says, indicates the ability to maintain the fractures within the targeted formation and not connect them into the overlying or underlying stratigraphy.

The company’s MD and CEO, Stuart Nicholls, said this facilitates the concentration of fracture energy into the target reservoir, maximising effectiveness of planned stimulations.

He told shareholders that, due to the quality of results during the DFIT at the toe end of the well and the minor incremental costs to include it, Elixir has now increased the official number of stimulation stages to 12.

This will then be incremental to the original 11-stage stimulation and will majorly increase the modelled productivity of the well during test.

Elixir is now mobilising and rigging up stimulation and well testing equipment with stimulation operations targeted to commence on schedule towards the end of this week.

Elixir has labelled L3 as a watershed moment for the Taroom Trough, demonstrating both a northern extension of Shell’s primary area of operations and drilling/testing results within the Tinowon ‘Dunk’ Sands.

L3H is the first horizontal well drilled and now tested outside of the Shell acreage on the upper western flank of the Taroom Trough, with the results to date validating the value, quality and materiality of Elixir’s substantial Taroom Trough acreage position.

EXR closed at 11.5¢. Mkt cap $214.9M.

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