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Elixir Energy (ASX:EXR) continues to ramp up its examination of the “red hot” Taroom Trough region in Queensland with the commencement of a significant onshore seismic program.
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The junior oil and gas explorer and specialist contractor Terrex have commenced mobilisation of the seismic fleet, key equipment and personnel in the lead-up to the commencement of the Teelba 2D campaign.
Teelba will acquire 200 kilometres of new 2D seismic across the north of the ATP2057 permit on the western flank of the trough – an area considered by Elixir to contain some of its most prospective Taroom Trough acreage.
Elixir’s managing director and CEO, Stuart Nicholls, told shareholders the survey will cover areas that are on trend with both Shell’s key wells and Elixir’s outstanding petrophysical results at the Lorelle-3 (L3) pilot well.
The data from the seismic will also assist in the definition of the subsurface make-up of ATP2057, with the information potentially supporting the independent certification of a gas and condensate resource in the future.
The Teelba 2D acquisition is expected to take approximately three-weeks to complete. Upon finalisation of seismic processing, Elixir will have met the work requirements and permit commitments for its February-2025 50% farm-in agreement with Santos (ASX:STO).
Elsewhere in the Taroom Trough, Elixir continues its closely watched Lorelle-3 drilling program. Elixir has started running into the hole at L3 with a directional drilling bottom hole assembly accompanied by a full logging-while-drilling suite.
Those tools will be used to collect reservoir parameters and hydrocarbon saturation, as well as geo-steering the well path through the Tinowon ‘Dunk’ Sands along the optimised zone within the 28m of net pay identified by the now completed SLB Lorelle-3H horizontal landing optimisation study.
Mr Nicholls has described L3 as one of the highest impact wells in the Taroom Trough, demonstrating a northern extension of Shell’s primary area of operations and drilling/testing within Tinowon ‘Dunk’ Sands.
“It is the first horizontal well to be drilled and tested outside of the Shell acreage on the upper western flank of the Taroom Trough and the petrophyscial results haver validated the value, quality and materiality of Elixir’s substantial Taroom Trough acreage position,” Mr Nicholls explained today.
The Taroom Trough is considered to have world-class gas potential, providing a solution to the East Coast of Australia’s energy crisis.
EXR is selling at 8.3cps heading into Friday. Mkt cap $159.5M.
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