Ann: Expanding in the Taroom Trough, page-34

To understand why Shell is relevant to what we’re doing with Santos, look no further than Dunk-1, Overston-2, Magnetic-1, and the Overston 3D seismic survey - because these aren’t just old well reports, they’re a playbook for what’s coming next. And why these wells matter?!

• Dunk-1 drilled into the Tinowon Formation, proving the presence of tight gas, but also showing low permeability—so unlocking this gas requires serious fracking.

• Overston-2 & Overston-1 targeted the Tinowon and Muggleton formations, hitting gas but with variable reservoir quality, meaning some areas were more productive than others.
• Magnetic-1 went deep into the Kianga Formation and Back Creek Group, where it hit strong gas shows, but in a tight reservoir system that needs modern extraction techniques.


The Overston 3D seismic survey, which was reprocessed in 2021, confirmed the presence of key Permian-aged sand bodies—the exact type of reservoirs Elixir and Santos are now chasing.

Here’s what it tells us:

• The Tinowon sands vary in thickness, with some areas holding better reservoir potential than others.
• One key challenge is the net-to-gross ratio—some areas have more productive sandstone, while others are dominated by shale.
• Fracture networks and structural traps will play a major role in determining where gas is commercially viable.

What This Means for the JV

• The Santos-Elixir acreage likely faces similar geological challenges—which means understanding fracture systems, sand body connectivity, and well stimulation techniques is critical.

• Seismic + well data = smarter drilling. The Overston 3D survey gives them a direct analogue for picking the best drilling locations in the JV blocks.
• Tight gas isn’t easy, but the prize is big. Success depends on using modern horizontal drilling and multi-stage fracking to unlock these deep gas plays.

The Big Picture: The Taroom Trough isn’t unexplored - it’s been drilled, and the gas is there. What Elixir and Santos are banking on is that today’s technology can unlock what was previously unreachable. And with wells like Dunk-1, Overston-2, and Magnetic-1 pointing the way, they’ve got a real shot at turning this tight gas opportunity into a major commercial success.