• Drilling operations have commenced at the Diona-1 conventional gas-oil exploration well in the Surat-Bowen Basin, Queensland
• Elixir Energy is fully carried for the drilling of the Diona-1 well by Xstate Resources Limited
• Successful results from Diona-1 may present Elixir with commercial options, including a potential move into production and cashflow generation

Elixir Energy Limited (ASX: EXR) has announced that drilling operations have commenced at the Diona-1 conventional gas-oil exploration well in the Surat-Bowen Basin in Queensland. The well is currently casing and cementing the top hole at a depth of 549m, measured depth. Elixir Energy is fully carried for the drilling of the Diona-1 exploration well by Xstate Resources Limited (XST) who is executing the drilling program as part of a transaction agreed earlier this year. While the Diona-1 well sits outside of Elixir's Taroom Trough focused strategy, the drilling of the well will meet the underlying work commitments of the broader ATP2077 permit, which will facilitate in moving the highly valuable and well-located 100% owned Taroom Trough sub blocks (A & B) into long term retention, a critical objective of Phase 1 in Elixir's strategic plan. On a positive result, Diona may present the Company with a suite of commercial options which may include a timely move into production operations and cashflow generation. The Diona-1 well targets 3-proven hydrocarbon bearing reservoirs being the Showgrounds, Tinowon and Wallabella, with the top of the Showgrounds being only 2,300m deep. The well is expected to take approximately 15 days to reach its total planned depth of 2,600m. If successful, there is potential for a rapid path to market given the Waggamba pipeline is less than 100m from the well pad, with a tie-in point approximately 1 km away.