• Stimulation equipment has arrived and rigging up has commenced at the Diona-1 well site
• Diona-1 three zone fracture stimulation and flow testing operations to commence imminently
• Testing operations may confirm a greater westerly extent of the Taroom Trough, increasing the overall prospectivity

Elixir Energy Limited (ASX: EXR), as operator and 49% holder of the ATP2077 Diona sub-block joint venture, has commenced testing operations at the Diona-1 well in the Surat-Bowen Basin, Queensland. Delivery of key equipment for the 3-zone fracture stimulation of the net gas-condensate pay measured in the Diona-1 well has occurred, with operations to commence imminently. These operations will be followed by the completion of the well with 2-3/8' tubing and rigging up for a period of flow testing and pressure monitoring. The 3 zones of gas-condensate pay that have been measured are within what is interpreted as over-pressured Permian sands from reservoir units that have produced locally or tested successfully from within the Taroom Trough. Collection and testing of hydrocarbon samples and measurement and interpretation of flowing pressures may provide the critical data required to evaluate the resource potential of the Diona sub-block, including the potential to confirm that the well sits inboard of the western edge of the Taroom Trough, which would increase the overall resource potential and prospectivity of the area. On success of these objectives, Elixir's significant Taroom Trough acreage would increase with the addition of a percentage of the gross 375 km² (93k acres) sub-block, with a corresponding impact on Elixir's Taroom Trough resource position.

If the testing operations are successful, there is potential for a rapid path to market given the proximity of the Waggamba pipeline, which connects to the Wallumbillia Gas Hub, the spot pricing point for eastern seaboard gas sales.