Elixir Energy Commences Stimulation and Testing Phase at Lorelle-3H Appraisal Well

Elixir Energy (ASX: EXR) has begun the stimulation, completion, and testing phase of its high-impact Lorelle-3H appraisal well in ATP2056 within Queensland’s Taroom Trough.

The first step will involve a diagnostic fracture injection test (DFIT) at the toe end of the horizontal well to measure reservoir pressure in the Tinowon “Dunk” Sandstone and collect data for the final multi-stage stimulation design.

Elixir has largely completed research and development work with SLB, Corelab, and Halliburton for an 11-stage stimulation program designed to deploy six million pounds of proppant across the well.

The company expects stimulation operations to begin in mid-June, followed immediately by flow-back and late-June testing designed to deliver an IP30 production curve for Lorelle-3H.

Testing Program Design

Elixir has used physical core and petrophysical data from the Lorelle-3 and Lorelle-3H wells to design the upcoming fracture stimulation and production test.

The program aims to determine whether gas and condensate can flow at rates and pressures from multi-stage stimulated horizontal wells in the Tinowon “Dunk” Sandstone capable of supporting a commercial development.

Elixir also plans to use the results to support modelling for the recovery of commercial quantities of gas and condensate from horizontal wells in the formation.

The testing work will measure gas and condensate ratios, compositions, pressures, temperatures, and other flowing conditions to support preparatory development studies.

11-Stage Stimulation

Halliburton has been awarded an integrated services package for the proposed 11-stage stimulation, plus the DFIT.

The stimulation will target 1,033m of good-quality net gas-condensate pay measured in Lorelle-3H, where porosity averaged 11.2% and reached up to 18%.

Elixir expects a three-to-five-day flow-back period after the stimulation, during which it will be monitor and measure well behaviour and flowing conditions.

Subject to field decisions and flowing conditions, Elixir plans to mobilise a workover rig and run a 2-7/8-inch tubing string to support well fluid velocity and manage bottom hole pressures before official testing begins.

SLB and EnServe have prepared the unload, flow-back and testing plan, incorporating knowledge from similar recent operations.

Lorelle-3H Background

Lorelle-3 was drilled in two phases, beginning with a pilot hole to 3,580m total vertical depth and an expanded core and log evaluation across Permian sandstone reservoirs in the Taroom Trough.

The results exceeded expectations and demonstrated multiple thick gas and gas-condensate bearing reservoirs as viable appraisal targets within 148m of measured net gas-condensate pay.

Elixir then completed a 1,157m horizontal sidetrack into the Tinowon “Dunk” Sandstone, which has now been cased and suspended for stimulation and production testing.

The Lorelle-3H flow test has been designed to demonstrate commercial gas and condensate flow rates from the basin centred gas play and support a potential maiden reserve conversion from the underlying resource.

Taroom Trough Position

Elixir is the largest acreage holder in the Taroom Trough, a multi-trillion cubic feet basin centred gas play in Queensland’s Bowen Basin.

The company’s acreage sits close to the Wallumbilla Gas Hub, multiple gas pipelines, nearby 25-million-tonne-per-annum LNG export infrastructure, operating refineries, and Queensland’s established onshore gas services sector.

Elixir is aiming to appraise its approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources.

The company described Lorelle-3 as a watershed moment for the Taroom Trough because it extends appraisal work north of Shell’s primary operating area and will test the Tinowon “Dunk” Sandstone on the upper western flank.