Elixir Energy to start second Lorelle-3H gas test on 1 October as Diona-1 lift awaits partner approval

Elixir Energy (ASX:EXR) has scheduled the second phase of flow testing at its Lorelle-3H well in Queensland's Taroom Trough to begin on 1 October 2026. A separate step, artificial lift and a restart of flow testing at Diona-1, is subject to joint venture approval, and the company has not given a start date.

What is happening

Lorelle-3H's first test phase peaked at 10.4 million standard cubic feet a day (mmscfd) of gas plus 10 barrels a day of condensate, from about 1,000 metres of reservoir. The well was still producing 800 barrels a day of fluid. The most stable 12-hour period averaged 2.35 mmscfd. The gas needs no processing. A 60-day soak comes before the second phase.

For Diona-1, Elixir has said the artificial lift and the recommencement of flow testing are "subject to JV approval". The company holds 49% of the Diona Prospect, which carries a P50 prospective estimate of 12.5 bcf (stated October 2025).

Why it matters

Elixir's main asset is the Grandis Gas Project, in which it holds 100%. Its February 2025 estimate is a P50 contingent resource of 1,715 bcf of gas and 13 million barrels of condensate. The company describes itself as the largest acreage holder in the Taroom Trough and cites about 3.5 TCF of independently certified 2C contingent gas resources.

Elixir says it intends to examine future reserves bookings after the second Lorelle-3H phase. If that work succeeds, some contingent resources could be reclassified, though the company has not said so.

Pathway to market

On 2 September, Elixir said APA Group had finished feasibility work on a pipeline from what it now calls the Warkon Pilot to the Wallumbilla Gas Hub. Two routes of 52 and 53 km were identified. A preliminary Class 5 estimate (accuracy -30%/+50%) put 15-year capacity charges at $0.35 to $1.32 per GJ, depending on throughput of 150 to 40 TJ/d. Simpliphi is due to finish upstream plant concept work this quarter.

Funding and uncertainty

Elixir raised $5 million on 12 August by placing 125 million shares at $0.04, a 20% discount to the prior close. Proceeds go to the Lorelle-3H soak and retest, Diona-1 lift and a strategic review that includes possible farm-outs.

Open points include whether the second phase confirms the first-phase rates, whether the joint venture approves the Diona-1 work, and what the strategic review concludes. Elixir has not stated the Diona-1 timing.