Elixir Energy has started the second phase of flow testing at the Lorelle-3H appraisal well within Queensland’s Taroom Trough.

Elixir said it had elected to shut in the well for a 60-day soak before recommencing testing after encouraging initial flows.

This phase of testing is designed to establish the sustained deliverability of the Dunk reservoir, assess the impact of the 60-day soak on well productivity, obtain additional reservoir pressure and flow performance data and generate the technical data required to support Elixir’s maiden reserves booking.

Subject to successful flow testing and the subsequent reserves assessment, Elixir Energy (ASX: EXR) said Lorelle-3H had the potential to become a foundation production well for the Warkon Pilot.

Related: Potential Beach farm-in for Elixir’s Taroom Trough assets

APA Group recently completed feasibility work on the optimal path to market for gas produced from the company’s north-western Taroom Trough gas and condensate production pilot project (Warkon).

Elixir has appointed Simpliphi to complete the first phase of concept select and engineering works on the necessary upstream plant for the project, now dubbed the Warkon Pilot.

Lorelle-3 (50 per cent held by Elixir and 50 per cent Santos) was drilled in two phases. Initially the pilot hole was drilled to 3580m total vertical depth and collected core and logs in an expanded evaluation program.

Elixir said the petrophysical results were above expectations and demonstrated multiple thick gas- and gas-condensate-bearing reservoirs as viable appraisal targets amongst the 148m of measured net gas-condensate pay.

The second phase of the drilling campaign included the placement of a 1157m horizontal sidetrack into 1033m of net pay in the primary target in the Tinowon ‘Dunk’ sandstone.

This was cased and stimulated with 6 million lbs of proppant across 12-stages for production testing.

The Lorelle-3H well produced initially at peak rates of 10.4 mmscfd with 10 bblsd of light oil/condensate or 10.5 mmscfd (about 13 TJd) expressed as a gas rate and averaged 6.2 mmscfde (7.5 TJd) over the hour.

From the most stable 12-hour flow period, flow rates averaged 2.35 mmscfd with 6 bblsd of light oil/condensate or 2.4 mmscfde (3 TJd) expressed as a gas rate and 763 bblsd of stimulation fluid with an average flowing tubing head pressure of 1634 psi while the well was on a 14/64” choke.

The well was then shut in to soak for 60 days before recommencing testing.