- 01Post-soak Lorelle-3H test underway.
- 02Dunk deliverability being assessed.
- 03Lorelle-3H could anchor Warkon Pilot near Wallumbilla.
- 04Maiden reserves hinge on test data; peak 10.4 MMscf/d.
Elixir Energy (ASX: EXR) has begun the second phase of flow testing at its Lorelle-3H appraisal well in Queensland’s Taroom Trough following a 60-day reservoir soak and encouraging initial clean-up performance.
The new test is designed to establish the sustained deliverability of the Dunk reservoir, assess the effect of the soak, and collect additional reservoir pressure and flow data required to support Elixir’s maiden reserves booking.
Subject to successful testing and the subsequent Reserves assessment, Lorelle-3H could become a foundation production well for the Warkon Pilot, which is co-located with the well and about 55 kilometres from the Wallumbilla Gas Hub.
The post-soak phase follows a 30-day clean-up flow period completed in July, when initial results compared favourably with other horizontal wells drilled in the Taroom Trough before Elixir shut the well in for the extended soak.
Post-Soak Testing
The extended soak was supported by several well observations including dehydrated clays in core, improving productivity during short shut-in periods, and the continued production of stimulation fluid when Lorelle-3H was last shut in.
Elixir plans to use the current test to determine sustained Dunk reservoir deliverability while gathering the additional pressure and flow-performance data needed for the Reserves assessment.
Lorelle-3H previously reached an initial peak gas rate of 10.4 million standard cubic feet per day (MMscf/d), with the combined gas and light oil or condensate output expressed as a gas equivalent of 10.5MMscf/d.
The most stable 12-hour flow period averaged a gas-equivalent 2.4MMscf/d, or about 3 terajoules per day, before the well entered its 60-day shut-in period.
Elixir noted that peak rates were achieved while stimulation fluid was still being produced from about 1,000 metres of reservoir, with further productivity expected as fluid rates naturally decline.
Appraisal Well Design
The Lorelle-3/Lorelle-3H appraisal well is owned 50% by Elixir, which operates the appraisal well, and 50% by Santos (ASX: STO), which is designated to operate the permit thereafter.
The pilot hole was drilled to 3,580m total vertical depth and an expanded evaluation program across Permian sandstone reservoirs identified 148m of measured net gas-condensate pay.
Elixir then placed a 1,157m horizontal sidetrack into 1,033m of net pay in the primary Tinowon ‘Dunk’ Sandstone target before casing and stimulating the well with six million pounds of proppant across 12 stages for production testing.
Qualifying drilling, coring, logging, analysis, completion, stimulation, and testing costs are eligible for a refund of up to 48.5% through an Advanced Finding under the federal government’s research and development tax incentive and tax return process.
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