Elixir Energy (ASX:EXR) has restarted flow testing at Lorelle-3H after a 60-day reservoir soak, putting one of its most important Taroom Trough wells back under the microscope.
The objective is straightforward.
Prove sustained deliverability, collect the reservoir data needed for a maiden Reserves booking and, if the test performs, establish Lorelle-3H as a potential foundation well for the Warkon Pilot.
First test showed the system works
Lorelle-3H completed its first 30-day clean-up flow period in July.
Peak rates reached 10.5 MMscfDe, with a final stable rate of around 2.35 MMscfDe.
The well also produced condensate/light oil, with the final flow period indicating around 10 barrels per MMscf of gas.
Importantly, the gas itself is high quality, with Elixir reporting minimal processing requirements and a strong energy conversion factor.
That first phase gave Elixir proof of concept, this second phase is about proving durability.
Reserves are the next line in the sand
The post-soak test is designed to establish sustained flow performance from the Dunk reservoir, assess the impact of the 60-day soak and generate the technical data needed for Elixir’s first Reserves assessment.
If successful, Lorelle-3H could become the first production well feeding the planned Warkon Pilot.
That matters because Warkon is not conceptual blue-sky infrastructure.
Elixir is already progressing upstream and midstream studies around a potential production system of up to 40 MMscf/d and 1,000 barrels per day, with a pathway toward the Wallumbilla Gas Hub roughly 55km away.
Scale is not the issue
Elixir already carries around 3.5 TCFe of independently certified 2C resources across its Taroom Trough position.
The company is also the largest direct acreage holder in the basin and argues Lorelle-3H has confirmed extensions of the same broader play systems being pursued by other operators in the region.
The challenge now is converting that resource scale into commercial flow.
Figure 1: Taroom Trough, Bowen Basin, Queensland.
More data is coming
Elixir is also set to receive around 100km² of new processed 3D seismic through agreements with QGC/Shell across key appraisal areas, including Lorelle-3 and the future Daydream-3 appraisal area.
That gives the company more detail to sharpen the next wave of drilling and appraisal.
At the same time, Elixir’s Board is running a strategic review that could result in self-funded development, a farm-out, corporate transaction, joint venture or a combination of those paths.
The objective is to accelerate commercialisation without locking into one structure too early.
What’s next
The immediate catalyst is obvious, flow data from Lorelle-3H.
If the well can demonstrate sustained commercial deliverability, Elixir moves closer to maiden Reserves, Warkon pilot production and a clearer route into the East Coast gas market.
The Taroom already gives Elixir the scale, now Lorelle-3H has to prove the flow.
