• Elixir and APA Group have executed an agreement to complete the feasibility work for the fastest and most economic path for Elixir’s northern Taroom Trough gas to reach the Wallumbilla Gas Hub (WGH). 
• The agreement will support a final concept selection for the pathway of gas produced from a notional Lorelle pilot project to reach the WGH and the feasibility works required to prepare an entry into pre-FEED. 
• Results will include a Class-V capital estimate and Level-1 schedule which are expected to be delivered in approximately 12-weeks. 
• Early definition of the route for Elixir’s Taroom Trough gas sales will allow timely access to the associated condensate/light oil resource that will be monetised via Queensland’s refining market. 

Elixir Energy and APT Management Services, a wholly owned subsidiary of APA Group, have executed an Early Works Agreement (EWA) to investigate the optimal path to market for gas produced from a notional and expandable 40 TJ/d Lorelle pilot project to the Wallumbilla Gas Hub, the exchange for wholesale gas trading and critical interconnection point for nine major pipelines in Queensland, linking gas supply from the Surat / Bowen Basins to domestic markets and LNG export facilities. 

The study will compare capex, opex, required approvals and time to serviceability for a pipeline from the Lorelle-3H location in ATP20561 to the Roma to Brisbane Pipeline (RBP) which is ~25km due North versus a pipeline directly to Wallumbilla, 50km to the North-West. The program will then include the feasibility works required on the chosen pathway to prepare for an entry into pre-FEED which will include a Class-V capital estimate and a Level-1 schedule. This work is a critical input into the evaluation of a potential Reserves booking post the flow testing at the Lorelle-3H appraisal well which is due to commence in June 2026. The study is expected to take approximately 12-weeks to finalise and complete. Elixir also expects to produce a significant quantity of associated condensate/light oil along with the gas from the notional Lorelle pilot. A separate path to market and plant study will be conducted to optimise the sale and transport of these liquid volumes into the Queensland refining market in due course.  

About Lorelle-3 

Lorelle-3 (L3/L3H) is situated in ATP2056 (50% EXR and operator of the L3/L3H appraisal well, 50% STO and operator of the permit thereafter) and has been drilled in two-phases. Initially the pilot hole was drilled to 3,580m total vertical depth and collected core and logs in an expanded evaluation program across the various Permian sandstone reservoirs within the Taroom Trough (Bowen Basin). The petrophysical results were above expectations and demonstrate multiple thick gas and gascondensate charged reservoirs as viable appraisal targets. Elixir has completed the second phase of the drilling campaign which included the placement of a 1,157m horizontal sidetrack into the primary target in the Tinowon ‘Dunk’ Sandstone which has been cased and suspended for stimulation and production testing commencing in June 2026. 

The data and core gathered from the expanded evaluation campaign leads into a series of experiments and laboratory work that will support the design and execution of an optimal stimulation. Elixir then intends to execute a multi-stage fracture stimulation and production test of the L3H well prior to end-June 2026. This sidetrack and flow test is designed to demonstrate commercial flow rates of gas and condensate from the Basin Centred Gas Play and then lead into a possible maiden Reserve conversion of the underlying Resource. 

The L3/L3H appraisal well costs associated with its qualifying activities that cover the drilling, coring, logging, analysis, completion, stimulation and testing of the well, are eligible for up to a 48.5% refund via the Advanced Finding that Lorelle-3 has qualified for under the Federal Governments Research and Development Tax Incentive and tax return process. 

L3 is a watershed moment for the Taroom Trough demonstrating both a northern extension of the hydrocarbon bearing reservoirs within Shell’s primary area of operations and the results of production testing from a horizontal well within Tinowon ‘Dunk’ Sands. L3H is the first horizontal well drilled and to be tested outside of the Shell acreage on the upper western flank of the Taroom Trough with the results so far validating the value, quality and materiality of Elixir’s substantial Taroom Trough acreage position. 

(1) Adoption of any outcomes of the EWA will be subject to the formation and processes within the ATP2056 JV, where Santos has a 50% working interest and is operator of the permit. 

KeyFacts Energy: Elixir Australia country profile