Elixir Energy Completes Fracture Stimulation Program at Lorelle-3H Appraisal Well

Elixir Energy (ASX: EXR) has completed the designed 12-stage fracture stimulation program at the high-impact Lorelle-3H appraisal well in ATP2056 within Queensland’s Taroom Trough.

Covering 1,033 metres of net gas-condensate pay within the Tinowon Dunk Sandstone reservoir, the program achieved placement of 100% of pumped proppant within the target formation.

Elixir is now milling out stage plugs ahead of flow-back operations and a planned 30-day gas-condensate production test.

The upcoming test is designed to help determine whether multi-stage stimulated horizontal wells can deliver commercial flow rates from the basin-centred gas play.

Fracture Stimulation Complete

Elixir reported that Halliburton executed the stimulation program as designed across the horizontal Lorelle-3H well section.

The work placed all pumped proppant into the target formation, creating a permeability pathway into the reservoir that was confirmed by multiple fall-off pressure tests.

Other pressure responses from the formation were consistent along the horizontal length of the well and aligned with pre-program expectations.

Elixir and Enserve/SLB have also completed rig-up of flow testing equipment, including specialised systems to measure multi-phase fluid, gas, and condensate flow during the flow-back period.

Flow Testing Next

Elixir has mobilised a coiled tubing unit to mill out the stage plugs installed during stimulation.

Those operations are expected to take between one and two days, with Lorelle-3H to remain in partial flow-back while each plug is milled out.

Once milling is complete, Elixir plans to rig down the coiled tubing unit and start staged flow-back through the 4.5-inch casing.

Studies completed with SLB support a clean-up process using methodical increases in choke size to preserve fracture placement, ease the well toward gas breakthrough, manage reservoir back pressure and reduce the risk of damage or skin formation.

Commercial Objectives

Lorelle-3H has been designed to test gas and condensate flow rates and pressures from multi-stage stimulated horizontal wells in the Tinowon Dunk Sandstone.

The test will also support modelling of potential commercial gas and condensate recoveries from the reservoir.

Elixir plans to measure gas and condensate ratios, fluid compositions, pressures, temperatures, and other flowing conditions to support preparatory development work.

The results could also support a potential maiden reserve conversion from the underlying contingent resource base if commercial flow performance is demonstrated.

Taroom Trough Position

Lorelle-3 was drilled in two phases, beginning with a pilot hole to 3,580m total vertical depth before the placement of a 1,157m horizontal sidetrack into the Tinowon Dunk Sandstone.

The pilot hole collected core and logs across multiple Permian sandstone reservoirs and identified 148m of measured net gas-condensate pay.

Elixir holds 50% of the Lorelle-3/Lorelle-3H appraisal well and operates the well, while Santos (ASX: STO) holds the remaining 50% and will operate the broader permit after appraisal.

Lorelle-3H is the first horizontal well drilled and tested outside Shell’s acreage on the upper western flank of the Taroom Trough, where Elixir holds the largest acreage position and approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources.