- Lorelle-3H’s 12-stage fracture stimulation program wrapped up.
- 100% of proppant placed within target formation.
- Currently milling out stage-plugs in order to commence flow-back operations.
- Preparing for 30 days of gas-condensate production testing.
Elixir Energy (ASX:EXR) is on target to commence a major gas-condensate production testing program at its high-impact Lorelle-3H appraisal well in Queensland’s Taroom Trough. The Taroom Trough pioneer has now completed its designed 12-stage fracture stimulation of the 1,033 metres of net gas-condensate pay within the targeted Tinowon ‘Dunk’ Sandstone reservoir in Lorelle-3H.
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A program executed by international oilfield specialist Haliburton was wrapped up with 100% of all proppant (sand) that was pumped into the well placed within the target formation, achieving a permeability pathway into the reservoir that was confirmed by multiple ‘fall-off’ pressure tests.
All other pressure responses observed from the formation were consistent along the horizontal length of the well and were as expected.
Elixir MD and CEO, Stuart Nicholls, has labelled the L3 well a watershed moment for the Taroom Trough, demonstrating a northern extension of Shell’s primary area of operations and drilling/testing results within the Tinowon ‘Dunk’ Sands.
It is the first horizontal well drilled and to be tested outside of the Shell acreage on the upper western flank of the Taroom Trough, with the results to date validating the value, quality and materiality of Elixir’s substantial Taroom Trough acreage position.
Elixir is the largest acreage holder in the Taroom Trough in the Bowen Basin. The Taroom Trough is a multi-trillion cubic feet basin centred gas play, which many oil and gas specialists and the Queensland government have highlighted as a major impetus for overcoming Australia’s East Coast energy concerns.
Lorelle-3 has added to that confidence with petrophysical results reported coming in above expectations, with multiple thick gas and gas-condensate bearing reservoirs identified.
The upcoming Tinowon ‘Dunk’ Sandstone horizontal and flow test is designed to demonstrate that gas and condensate can be flowed at rates and pressures from multi-stage stimulated horizontal wells to support a commercial development.
It will also support modelling that recoveries of commercial quantities of gas and condensate can be achieved from multi-stage stimulated horizontal wells in the Tinowon ‘Dunk’ Sandstone.
Notably, the test will also measure gas and condensate ratios and compositions, and measure and record pressures, temperatures and other key flowing conditions in order to support the preparatory work required for development.
Lorelle is in licence ATP2056, where Elixir holds 50% of and is the operator, with partner Santos also holding 50% and will take over as operator of the permit in the future.
EXR is steady at 11¢. Mkt cap $205.5M.
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