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Elixir Energy (ASX:EXR) believes its Lorelle-3 appraisal well is one of the highest-impact wells to be drilled in the Taroom Trough in Queensland in CY26, with the company reporting that preliminary observations suggest Lorelle-3 has intersected multiple Permian hydrocarbon reservoirs in permit ATP2056.
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MD and CEO, Stuart Nicholls, said L3 is significant as it is being drilled and tested approximately 10km from the best penetration of the Taroom Trough’s Tinowon ‘Dunk’ Sands, identified in Shell’s Dunk-1 well.
“L3 will be the first well outside of the Shell acreage drilled on the upper western flank of the Taroom Trough and has the opportunity to validate the value, quality and materiality of Elixir’s substantial Taroom Trough acreage position,” he said.
The Lorelle-3 pilot was successfully drilled to a total depth of 3,580m with the primary, secondary and tertiary Permian reservoir targets observed on logging while drilling (LWD) tools with associated elevated mudgas.
The drilling contractor has successfully cut and retrieved an 18m whole core from the upper Tinowon ‘Dunk’ Sandstone, with recovered sections observed to be of high-quality.
The Tinowon ‘Dunk’ Sandstone is estimated to have a preliminary thickness of 60 metres, and Elixir will test that through wireline logging. Drilling operations were then recommenced, passing through the remainder of the upper and lower Tinowon ‘Dunk’ and then to the final depth.
The primary and secondary Overston and Lorelle sandstones and tertiary Kianga group targets were all observed on LWD with associated elevated mudgas readings, Elixir confirmed. Along with preliminary observations, multiple mudgas shows were also observed in the lower Rewan formation.
Around 480km north of Brisbane, the Taroom Trough is considered a major opportunity to help overcome Australia’s east coast gas shortage fears.
EXR was up +8.14% at Monday’s close, to 9.3c.
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