Elixir Energy lines up contractors ahead of Diona-1 stimulation and flow testing Proactive uses images sourced from Shutterstock

Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has locked in the major contractors and critical equipment needed to stimulate, complete and flow test the Diona-1 exploration well in Queensland’s Surat-Bowen Basin, clearing a key execution hurdle ahead of the next phase of work. All essential service and equipment providers for the stimulation, completion and testing program have now been finalised, with field operations expected to begin in March 2026 and culminate in a planned 14-day flow test starting in April 2026.

Finalising procurement effectively shifts Diona-1 from planning into delivery, reducing scheduling risk and giving Elixir a clearer run at a near-term data event that could determine whether the well moves from “potential” to “discoverable and developable”.

Elixir has completed the design for the stimulation and completion program, which is planned as a 3-stage stimulation targeting the identified pay zones in the overpressured Permian section of the well.

Looking for potential field size

The initial objective is to demonstrate gas and condensate recovery to surface and to test reservoir productivity based on the petrophysical interpretation. If results support it, Elixir plans multi-rate flow testing to help estimate connected resource volumes, formation pressures, commerciality and potential field size.

Diona-1 was drilled, logged and cased in Q4 2025. Elixir reported 23 metres of net gas pay in the overpressured Permian section across 3–4 zones, with the intervals comparable to zones that have historically produced hydrocarbons in the region.

The well sits between the Silver Springs Gas Plant and the Waggamba gas field and is close to existing gas infrastructure. Elixir noted the Waggamba pipeline is less than 100 metres from the well pad (with an above-ground tie-in point around 1km away), providing a potential pathway to market if flow testing is successful. The pipeline links via the Silver Springs Gas Plant to the Wallumbilla Gas Hub, a key eastern seaboard gas pricing point.

Elixir holds 49% and is operator of the ATP2077 Diona sub-block, with Xstate Resources (ASX: XST) holding 51%.

Elixir secures Lorelle-3H heel as horizontal phase nears

It has been a busy week for Elixir, which has also drilled and cased the heel of its high-impact Lorelle-3H appraisal well in Queensland’s Taroom Trough, pushing through the overlying Wallabella coal and into the primary Tinowon “Dunk” Sandstone target.

Securing the heel with a cemented 7-inch liner represents a key interim milestone and a meaningful de-risking step ahead of the horizontal drilling phase, which is expected to begin imminently.

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