Elixir Energy's (ASX:EXR) Lorelle-3 results represent a key de-risking milestone in demonstrating the commerciality of the company's Taroom Trough acreage, according to a Monday Euroz Hartleys note.
The company on Monday said it measured 1,033 meters of high-quality net gas-condensate pay within the Tinowon Dunk Sandstone at its Lorelle-3H well, with average porosity of 11.2% and a maximum of 18%, with reservoir quality and hydrocarbon saturations far exceeding those in the initial pilot hole.
The research firm views Elixir Energy as the leading ASX exposure to the emerging Taroom Trough, a rare trillion-cubic-feet-scale east coast gas growth basin located near the domestic Wallumbilla Gas Hub and the Gladstone liquid natural gas facilities.
Euroz Hartleys maintained its speculative buy rating on Elixir Energy and raised its price target to AU$0.19 from AU$0.16.