Elixir Energy's (ASX:EXR) flow test result at the Lorelle-3H well in the Taroom Trough, onshore Queensland, could indicate the commercial potential of the basin, Euroz Hartleys said in a Friday note.

Elixir said it completed a 12-stage fracture stimulation program at its Lorelle-3H appraisal well.

Interest is rising due to the basin's scale, with billions of dollars of in-ground value, to be proved in a commercial sense, with proximity to existing infrastructure servicing domestic gas and liquefied natural gas plant markets.

A successful commercial flow test result, proving around 4 million standard cubic feet per day to 5 million standard cubic feet per day, would increase the mergers and acquisitions appeal of Elixir as a target for basin peers and LNG players.

The investment firm reiterated its speculative buy recommendation on Elixir Energy with its price target of AU$0.28 per share currently under review.