Elixir Energy (ASX:EXR) has commenced drilling operations at its Lorelle-3 appraisal well in the Taroom Trough, Queensland, marking a major step in its Basin Centred Gas Play program.
The company confirmed the safe mobilisation of the Helmerich C. Payne FlexRig 3 from Brisbane, with rig-up and inspections completed.
Drilling operations officially began following the acceptance of the rig onto contract, and Elixir plans to provide shareholders with updates at key milestones, including casing and logging operations.
Lorelle-3, located in ATP2056 at 26° 58’ 40.184”S, 149° 29’ 15.986”E, will be drilled in two phases.
The initial phase involves a pilot hole to a total vertical depth of 3,600m, collecting core samples and logs to evaluate Permian sandstone targets, primarily the Dunk member of the Tinowon Sands, with secondary targets including Overston and Lorelle Sandstones.
The second phase will feature a horizontal sidetrack of at least 1,000m into the primary target, followed by casing, stimulation, and production testing.
The entire campaign is expected to take approximately 45 days.
Data from the expanded evaluation program will guide laboratory studies and the design of a multi-stage fracture stimulation to demonstrate commercial gas and condensate flow rates ahead of a potential maiden Reserve conversion.
The well, located near Shell's Dunk-1 well, represents one of the highest-impact drilling projects in the Taroom Trough for 2026 and offers an opportunity to validate the quality and value of Elixir's substantial acreage.