Elixir Energy Advances Queensland Gas Play with Diona-1 Testing and Lorelle-3 Drilling

Resuming Momentum at Diona-1

Elixir Energy Limited has announced a significant operational update from its Queensland assets, signalling renewed momentum in its exploration and development activities. The company has resumed operatorship of the Diona-1 well within the ATP2077 permit following the completion of joint venture arrangements with XState Resources. With a 49% stake, Elixir is now advancing into the critical phase of multi-stage stimulation and production testing, targeting execution within the current quarter.

The Diona-1 well holds promise due to its proximity to existing pipeline infrastructure, less than 100 metres from the Waggamba to Silver Springs pipeline, which could facilitate a rapid tie-in and early production. This strategic advantage positions Elixir to potentially generate early cashflow, a key milestone for any exploration company transitioning towards commercial operations.

High-Impact Lorelle-3 Drilling Set for January 2026

Looking ahead, Elixir has secured terms and land access for the drilling of the Lorelle-3 appraisal well, planned to spud in January 2026. Notably, the company will utilise the Helmerich & Payne FlexRig 648, a heavy-duty rig recently imported by Shell for its own Taroom Trough appraisal campaign. This collaboration underscores a rare example of inter-operator cooperation in the basin, leveraging world-class equipment to enhance drilling efficiency and effectiveness.

Lorelle-3 is positioned less than 10 kilometres from Shell’s Dunk-1 well, which demonstrated a high-quality conventional reservoir with a 37-metre net pay zone. Success at Lorelle-3 would validate Elixir’s acreage on the upper Western flank of the Taroom Trough, potentially confirming the presence of the Basin Centred Gas Play (BCG), a geological model that, if proven, could significantly expand the resource base and commercial prospects of the region.

Strategic Implications and Resource Potential

Elixir’s Managing Director Stuart Nicholls highlighted the strategic positioning of the company’s acreage, which is the largest net holder in the Taroom Trough with over 100 kilometres of linear exposure. The upcoming testing and drilling programs are designed not only to confirm resource presence but also to refine stimulation and production techniques that could unlock commercial quantities of gas and condensate.

The company’s approach includes expanded data acquisition and testing across various Permian sandstone targets, supported by recent seismic data and research development approvals. This methodical evaluation aims to dismiss competing geological models, such as the presence of a downdip water leg, which could otherwise limit resource potential.

Overall, Elixir’s progress in Queensland reflects a carefully calibrated strategy to transition from exploration to production, leveraging infrastructure proximity, JV partnerships, and advanced drilling technology to de-risk and accelerate development.