• Lorelle-3 appraisal well in ATP2056 awarded Advance Finding under R&D program
• R&D program to cover up to 48.5% of eligible costs for drilling, analysis, completion and testing
• Funding to support Lorelle-3, a high-impact well in the Taroom Trough Basin Centred Gas Play

Elixir Energy Limited (ASX: EXR) has announced that the high-impact Lorelle-3 appraisal well in ATP2056 within Queensland's Taroom Trough has been successful in being awarded an Advance Finding through its application to AusIndustry. The Lorelle-3 appraisal well costs associated with its qualifying activities that cover the drilling, coring, logging, analysis, completion and testing of the well, will be eligible for up to a 48.5% refund on eligible costs via the Federal Government's Research and Development Tax Incentive and regular tax return processes. The financial support secured for the drilling and testing of this well via the R&D incentive program, combined with planned lending facilities, will provide a critical source of capital required for the Lorelle-3 appraisal well. Lorelle-3 is planned to be drilled to 3,600m total depth, collecting core and logs in an expanded evaluation program across the various Permian sandstone targets within the Basin Centred Gas Play. This increased data acquisition is designed to facilitate a series of experiments and tests that may prove the Basin Centred Gas Play is definitively present versus other possible geological models and inform the best way to stimulate and produce the trapped gas and associated condensates. Proving this BCG model will also have a collateral valuation impact across the Taroom Trough, as it will dismiss the concept of any downdip water leg making the deeper and more central acreage more prospective for the presence of recoverable gas. Lorelle-3 will be one of the highest impact wells in the Taroom Trough in 2026 as it will be drilled and tested ~10km from the best penetration of the Taroom Trough's Tinowon 'Dunk' Sands in Shell's Dunk-1 well, which had a 37m (100% net to gross) package of high-quality reservoir.

The data gathered from the expanded evaluation program to support the R&D will lead to significant geological knowledge gains in the exciting Taroom Trough and will also allow for a scientific and methodical approach to designing the optimal stimulation and testing program. Lorelle-3 has the chance to be a basin defining outcome for the Taroom Trough and Elixir's significant acreage position.