Slides
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1 Regionally impactful flow testing at Lorelle-3H August 2026
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2 Lorelle-3H has met its key objectives Dunk sand polygon 2,795km²1. Proven that gas and condensate can be flowed at rates and pressures from multi -stage stimulated horizontal development wells in the Tinowon ‘Dunk’ Sandstone to support a commercial development. 2. It has provided critical data to support modelling that recoveries of commercial quantities of gas and condensate from multi-stage stimulated horizontal wells in the Tinowon ‘Dunk’ Sandstone can be achieved. (However further data is also required) 3. Gas and condensate ratios / compositions have been collected to support preparatory works for development. 4. Flow conditions and data have been collected and recorded, including pressures, temperatures and other key requirements to support the preparatory work required for development and development well design. More than 2,000 well spaces ¹Source: Sproule ERCE database When translated to development wells of 2,000m lengths, noting a 2,600m long Dunk well has been recently drilled by an adjacent operator. Lorelle-3H has: Lorelle-3H Daydream-2
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3 Lorelle-3H positive first phase test results 1,033m net gas-condensate pay, 11.2% avg & up to 18% Tinowon Dunk Overston Lorelle Gas - Condensate Gas - Condensate Gas - Condensate Dry-Gas Lorelle-3 & 3H Schematic (not to scale) Kianga Group 60m net pay, 14% max porosity 59m net pay, 17% max porosity 28m net vertical pay, 12-stage stimulation L3H was a proof of concept which has performed significant regional impacts: Peak rates: 10.5 mmscfde (13 TJd) / 6.2mmscfde (7.5 TJd) for the hour Stable: Avg 2.35mmscfd (3 TJd): Development wells (2,000m equivalents) Peak rates: 15 TJd equivalent Stable: Avg 6 TJd equivalent L3H is now a production ready well. These first phase of results will improve as fluid naturally declines over time. Note the Dunk Sandstone is one of 3 key reservoirs units in the pilot well.
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4 Excellent quality oil and gas 82% 10% 4% 2% The gas within the Dunk Reservoir is very high quality with a volume to energy/sales conversion of 1.21 requiring nil processing Gas Sample Analysis from Lorelle-3H % mol Produced condensate had the profile of a hybrid condensate/light oil with a 47.8˚ API which usually commands a premium to crude pricing Methane Ethane Propane C4-C11 CO2 N2 Condensate/Oil Sample from Lorelle-3H Final flow period indicated a condensate/oil to gas ratio of 10 bbls/mmscf. Based on core and petrophysical work this is expected to change (increase) over longer term production testing
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Lorelle-3H a continuance in Taroom evolution 5 All unconventional basins experience a steep early learning curve as evolutions and optimisation of length, completion and operating procedures produces gains in productivity and recovery. This has been demonstrated in Australia’s own Betaloo Basin and the analogous Montney in Canada Montney Type Curve Evolution 3,000m laterals² ¹Source: Company & Industry reports ²Source: Sproule ERCE database 2016 1st Gen 1 2024 2nd Gen 6 2025 3rd Gen 7 2026 4th Gen 10 Taroom Trough 1st Generation Wells¹ months mmscfdeWells Peak Rates Stabilised Rates Canyon-1H (650m) 3.3 mmscfde 2.4 mmscfde (24 hours) FTHP: 1,399 psi Choke: 16/64th Offset Well (~1000m) ~3 mmscfd e ~1.7 mmscfde Lorelle-3H (~1000m) 10.5/6.1 mmscfde Stim fluid: 800 bblsd/d FTHP: 2,500 psi Choke: 40/64 th 2.35 mmscfde (12 hours) Stim fluid: 763 bblsd/d FTHP: Avg 1,634 psi Choke: 14/64 th Increasing length & completion intensity Beetaloo Basin Initial Rates (approx. mmscfd) ¹
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Basin-Centered Gas – Desiccated/Dehydrated system Chart indicates that the reservoir contains almost no free or movable water, all fluid recovered is stimulation fluid (matched by salinities). Fluid recovery will be finite. Post full cleanup production from the Dunk reservoir is highly likely to feature water-free production. Chat shows normally hydrated clays above the line. Lorelle (Dunk) clays are below. Water is immobile and there is less water than the clays want to hold so reservoir is desiccated or dehydrated. The clays are looking for additional water to be on balance, which gives credence to the concept of soaking. Studies show clays will not swell but are susceptible to fluid migration. KCL and choline chloride used as a clay stabiliser in stimulation fluid to mitigate formation damage. Work completed on L3 was done by CoreLab SME who also did Beetaloo Basin work, proving positive effects of soaking. Core captured from Dunk Reservoir in Lorelle-3 post laboratory test work on clays and formation water confirms desiccated sands/dehydrated clays Normally hydrated Dehydrated L3H Core samples from Dunk Reservoir (preliminary analysis)
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7 Soaking value proven in analogous play types Montney Well 1 Source: Corelab Shenandoah S-1H 21-day soak, 2.5 to 4.9 mmscfd The Beetaloo Basin has demonstrated that extended soak periods after hydraulic fracturing can materially improve well performance, and it is now considered a key part of completion design for the deeper, over-pressured Mid Velkerri B Shale. The theory is that shutting the well in after stimulation allows fracture fluid to imbibe into the highly desiccated shale matrix, increasing gas relative permeability before sustained production begins. Tamboran and Core Laboratories have suggested that the unusually dry nature of the Mid Velkerri shale (estimated to be 5– 10 times more desiccated than many US shale plays) makes the basin particularly responsive to soaking 150-day soak, 2.9 to 6.4 mmscfd Carpentaria-3H Tanumbirini-2H 2-day soak, 1.3 to 1.7mmscfd +30% +96% +221% Lorelle-3H – July 2026 Phase-1 10.44 mmscfd peak flow 2.35 mmscfd most stable flow ??% improvement 60-day soak Lorelle-3H – October 2026 Phase-2 ___ mmscfd peak flow ___ mmscfd stabilised flow Two flow period separated by a 67- day soak 44% improvement in gas rate 67% reduction in fluid rate 14% improvement in FWHP Post flow analysis indicated an increase of ~290% connected volume. Additional soaking literature: Determination of Fracture Surface Area from Flowback Data: A case study for northern Montney play, British Columbia, Canada Al Moghadam, TNO Energy Transition Noga Vaisblat, Nicholas B. Harris, Rick Chalaturnyk, University of Alberta
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More Lorelle-3H action to come Next Steps 1. Post first phase flow testing analysis which will include mapping of tracers from individual fracture stimulation zones in produced fluid. 2. Production modelling and ultimate recovery work to support potential Reserve estimates. 3. 60-day soak, followed by second flow period commencing on 1 st of October 2026 to build data to support Reserve estimates. 8
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Fracture stimulation of Lorelle-3H Stuart Nicholls CEO& Managing Directorwww.elixirenergy.com.au stuart.nicholls@elixirenergy.com.au