Highlights

  • Lorelle-3H reached peak rates of 10.4 million standard cubic feet a day, roughly 13 terajoules a day, plus condensate.
  • Elixir would farm out half its Taroom Trough interests and operatorship to Beach Energy in a $205 million transaction.
  • Cash of $6.02 million at 30 September equals an estimated 0.7 quarters of funding, according to the Appendix 5B.
  • Contingent resources total 1,198 billion cubic feet at 1C, 3,274 billion at 2C and 9,106 billion at 3C.

A $205 million farmout, yet only $6.02 million in the bank. That is the contrast running through the Q1 FY27 quarterly report from Elixir Energy (ASX:EXR), released on 27 October 2026. The three months to 30 September delivered peak flow rates from Lorelle-3H in Queensland's Taroom Trough, while the Appendix 5B estimated just 0.7 quarters of funding.

Lorelle-3H Flow Testing

Lorelle-3H sits in permit ATP2056, in which Elixir holds a 50 per cent interest. First-phase clean-up and flow-back lasted about 30 days, with three shut-ins for a tubing run and pressure build-up tests. Peak rates reached 10.4 million standard cubic feet a day, or roughly 13 terajoules a day, along with 10 barrels a day of condensate, from about 1,000 metres of reservoir.

The most stable 12-hour period produced 2.35 million standard cubic feet a day and 6 barrels a day of condensate. About 34 per cent of the injected stimulation fluid, around 18,000 barrels, had been recovered. The gas contained about 1 per cent carbon dioxide, around 10 per cent ethane and about 4 per cent propane, and the company said it needs no processing beyond standard dehydration.

A 60-day soak followed. Post-soak testing began on 1 October 2026 and is expected to finish at the end of October, with results to be reported in the coming quarter. The company noted that its peak and average rate figures use different bases and are not directly comparable.

The Beach Energy Farmout

On 23 October, after the quarter ended, Elixir announced it would farm out half of its working interests and operatorship across its Taroom Trough portfolio, excluding the Diona joint-venture sub-block, to Beach Energy. The company put the total transaction value at $205 million. That comprises $25 million in cash, including a $2 million security deposit already paid, and $180 million in gross carried work over about four years at Beach's cost. Elixir would retain 1,193 square kilometres of net acreage.

The deal is described as a farmout rather than a completed sale. The quarterly report presents the contingent resources as stated before completion of the transaction. Classed as "development unclarified" basin-centred gas, they total 1,198 billion cubic feet at the 1C level, 3,274 billion at 2C and 9,106 billion at 3C, with 10, 30 and 98 million barrels of condensate respectively.

Other Permit Activity

Elixir is exchanging data with QGC, a Shell subsidiary, including 3D seismic over the southern ATP2056 border in return for coverage of 54 square kilometres in ATP645. At ATP2057, the farm-in seismic obligation was met, and a later work program extension and a production commencement area application await Queensland approval.

At the Diona sub-block, where Elixir holds 49 per cent, artificial lift and further testing of Diona-1 are planned for the second half of FY27, subject to joint-venture agreement on a program and budget. APA Group completed pipeline and custody transfer feasibility work to the Wallumbilla Gas Hub for the Warkon pilot.

Funding and Cash Position

Elixir reported cash of $6.02 million and undrawn debt of $1.74 million at 30 September. Operating cash outflow was $780,000. Financing inflows of $7.28 million included $5.027 million of equity proceeds from an August placement at 4.0 cents a share.

The company said it expects to continue operations on the basis of the Beach cash and carry. Its research and development facility had $10.256 million drawn from a $12 million limit and is repayable by 28 February 2027 or on receipt of the refund. The company said the claim has been approved for refund. East coast wholesale gas averaged $10.77 a gigajoule over the quarter.