Elixir Energy's (ASX:EXR) initial stabilized production rates at its Lorelle-3H appraisal well in Queensland met the objective of demonstrating a commercial flow rate, representing a major technical milestone for both the company and the Taroom Trough exploration area, Euroz Hartleys said in a Monday note.
Lorelle-3H achieved a 1,033-meter net gas pay horizontal section with peak gas rates of 10.4 million standard cubic feet per day and 10 barrels per day of condensate.
The company has now shut-in the well for 60 days ahead of a second phase of flow testing planned to start in early October, the investment firm said.
The initial flow testing results support reserve conversion and future development planning while boosting the strategic appeal and value of Elixir Energy's acreage. While the condensate rate is a little lower than anticipated, it may rise on unloading and further testing, Euroz Hartleys said.
It added that the results also compare favorably to Beetaloo Energy's (ASX:BTL) Carpentaria-5H well in the Beetaloo Basin drilled in July 2025.
Euroz Hartleys maintained a speculative buy recommendation on Elixir Energy with an under-review price target of AU$0.28 per share.
Elixir Energy shares fell 29% in recent Monday trade.