Elixir Energy Hits Major Milestone in Queensland Gas Play with Record-Breaking Well
Brisbane, Queensland – In a development that could reshape the economics of a key Australian gas province, Elixir Energy Ltd (ASX:EXR) has announced exceptional results from its Lorelle-3H appraisal well in the Taroom Trough, part of the wider Bowen Basin in Queensland. The well successfully intersected a remarkable 1,033 metres of net gas-condensate pay within the primary target formation, setting a new benchmark for the basin.
The achievement is not just about length. Data from the well indicates reservoir quality surpassing pre-drill expectations, with average porosity of 11.2% and peaks reaching 18%. This, combined with strong gas readings throughout the horizontal section, suggests the Tinowon 'Dunk' Sandstone reservoir is more extensive and uniform than previously modelled. The well reached a total depth of 4,477 metres, with a 1,157-metre lateral section that stayed entirely within the target zone—a feat of precision drilling.
"This is an exceptional outcome that materially de-risks our understanding of the reservoir," said Elixir's Managing Director, Stuart Nicholls. "The results validate our geological model and support the potential for future long-reach development wells across our acreage."
The Lorelle-3H campaign, completed in just 46 days, was executed in two phases: an initial vertical pilot hole to gather critical core and log data, followed by the horizontal sidetrack. The well has now been suspended ahead of a planned multi-stage fracture stimulation and a crucial 30-day production test scheduled for Q2 2026. This test is viewed as a pivotal step towards Elixir booking its maiden gas reserves in the trough and advancing the project toward development.
The company's position is strategically significant. It holds a 50% operating interest in the ATP2056 permit (with Santos holding the remainder) and is targeting a basin-centred gas play with an estimated 2.8 trillion cubic feet of contingent resources. Proximity to the Wallumbilla Gas Hub and major pipeline infrastructure provides a potential route to market, a key advantage in a region hungry for reliable gas supply.
Analyst & Stakeholder Reaction:
"The scale of the pay zone is genuinely impressive. It suggests the Taroom Trough could host a more continuous resource than many anticipated. The next step—the flow test—will be the ultimate arbiter of commerciality, but this is a very strong start." – Michael Chen, Energy Analyst at Veritas Capital
"This is exactly the kind of technical success needed to attract further investment into Queensland's gas sector. It demonstrates that with modern drilling techniques, there are still substantial resources to be unlocked, which is vital for both domestic energy security and the LNG export industry." – Dr. Sarah Finch, Geologist & Industry Consultant
"A kilometre of gas pay? Great for shareholders, but let's not pop the champagne yet. We've seen 'record-breaking' wells before that later struggle to produce economically. Every new fossil fuel project locks us into a hotter future. The real 'exceptional outcome' we need is rapid investment in renewables, not more gas." – David Kaur, Spokesperson for Climate Action Now
"For a junior explorer like Elixir, this result is transformative. It proves up the asset's value and puts them in a much stronger position whether they choose to develop it themselves or seek a partnership with a major. The operational efficiency—completing such a complex well in 46 days—also speaks volumes." – Rebecca Shaw, Portfolio Manager at Mineral Hill Investments
Elixir is not resting on this success. The company is concurrently advancing a 200-kilometre seismic survey in its adjacent ATP2057 permit to further refine its subsurface targets, indicating a sustained and systematic exploration approach in the Taroom Trough.