Elixir Energy (ASX:EXR) started drilling operations for the Lorelle-3 appraisal well in ATP2056 within Queensland's Taroom Trough, following the mobilization of the Helmerich & Payne FlexRig 3 Rig 648, according to a Tuesday filing with the Australian bourse.

The company holds a 50% interest in Lorelle-3 while Santos (ASX:STO) owns the remaining 50%, per the filing.

Elixir Energy shares fell nearly 5% in afternoon trade on Tuesday, while Santos shares were up 3%.