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07 July 2026

Daily Newsletter

07 July 2026

Elixir Energy’s Lorelle-3H begins transition to gas production

Elixir reported that initial fluid recovery rates were within the expected range and that the stimulation fluid was returned without any solids.

Salong Debbarma July 06 2026

Elixir Energy’s Lorelle-3H well has begun transitioning from fluid to gas production in the ATP2056 prospect within Queensland’s Taroom Trough, after recording sustained gas breakthrough five days into clean-up operations.

The company completed plug milling after a 12-stage fracture stimulation and started a controlled drawdown. This process has matched the daily maximum reduction in bottom hole pressure (BHP) recommended by recent SLB studies.

Elixir reported that initial fluid recovery rates were within the expected range and that the stimulation fluid was returned without any solids, indicating that the fracture stages are performing as intended.

The well was drawn down through a 12/64th choke, and sustained gas flow was recorded at a BHP of 6,300lb per square inch (psi), just below the reservoir pressure of 6,350psi.

Fluid rates have declined while gas rates have increased, with wellhead pressure behaving in line with company expectations as the well transitions from fluid to gas-dominated production.

Operational data provided by Elixir shows that wellhead pressure initially measured around 3,200psi with approximately 1,600 barrels per day (bpd) of fluid. It declined to around 1,680psi and 800bpd, and then rose again to 1,770psi as of the latest update, with gas production increasing throughout the period.

The gas-condensate production test is scheduled to commence soon, at which point peak gas rates will be observed as part of the ongoing production testing in July.

The Lorelle-3/L3H appraisal well is operated by Elixir, with Santos holding a 50% interest and acting as permit operator thereafter.

The well, drilled in two stages, targeted the Tinowon ‘Dunk’ Sandstone with a 1,157m horizontal sidetrack and was cased and stimulated for testing.

The project qualifies for a refund of up to 48.5% under the federal government’s Research and Development Tax Incentive.

Elixir aims to assess the ability to produce gas and condensate from the Tinowon ‘Dunk’ Sandstone at commercial rates, measure compositions and support preparatory work for potential development.

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