Elixir’s Diona-1 Drilling Could Make or Break Taroom Trough Retention Strategy

Drilling Commences at Diona-1

Elixir Energy Limited has officially begun drilling operations at its Diona-1 exploration well, located within the ATP2077 permit in Queensland’s Surat-Bowen Basin. The well is currently in the casing and cementing phase at a measured depth of 549 metres, marking the initial steps in what the company hopes will be a successful exploration campaign.

The drilling is being carried out using the Ventia 101 rig and is fully funded by Elixir’s partner, Xstate Resources Limited, as part of a previously agreed transaction. This arrangement allows Elixir to advance its exploration objectives without immediate capital outlay, while maintaining a significant equity interest in the project.

Strategic Importance Beyond Immediate Targets

While the Diona-1 well lies outside Elixir’s core focus area in the Taroom Trough, the drilling campaign fulfills essential permit commitments that will enable the company to secure long-term retention of its highly valuable Taroom Trough sub blocks. This is a critical milestone in Elixir’s Phase 1 strategic plan, underpinning the company’s broader ambitions in the region.

Success at Diona-1 could open multiple commercial pathways, including a swift transition to production and cashflow generation. The well targets three proven hydrocarbon-bearing reservoirs; the Showgrounds, Tinowon, and Wallabella formations; with the top of the Showgrounds formation expected at around 2,300 metres depth. The total planned depth is approximately 2,600 metres, with drilling anticipated to take around 15 days.

Infrastructure Advantage and Future Prospects

One of the standout features of the Diona prospect is its proximity to existing gas infrastructure. The well pad is less than 100 metres from the Waggamba to Silver Springs gas pipeline, with a tie-in point roughly one kilometre away. This close access could facilitate a rapid path to market if hydrocarbons are discovered in commercial quantities.

Moreover, a successful outcome at Diona-1 may lead to the high grading of additional prospects and leads within the ATP2077-D permit area, potentially expanding Elixir’s exploration footprint and resource base.

Elixir Energy’s Position in Queensland

Elixir Energy is the largest acreage holder in the Taroom Trough, a region advantaged by its proximity to the Wallumbillia Gas Hub, multiple pipelines, and significant LNG export infrastructure. The company is focused on appraising its independently certified contingent gas resources, which border Shell’s primary investment area in the Basin Centred Gas Play.

With the Diona-1 drilling campaign now underway, Elixir is taking a decisive step towards unlocking value from its Queensland assets, balancing near-term exploration with longer-term strategic objectives.