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Highlights
- Elixir Energy confirms gas flow at Daydream-2 well in Queensland.
- Daydream-2 recorded a peak gas flow rate of 2.6 million standard cubic feet per day.
- Plans for Daydream-3 well are underway, with resource estimates significantly increased.
Elixir Energy Ltd (ASX:EXR) has successfully concluded its testing program at the Daydream-2 well, part of the Project Grandis in Queensland's Taroom Trough. The well achieved gas flow from five out of six stimulated zones, including, for the first time, production from deep coal zones. This marks an important step forward for Elixir, an ASX energy stock, as it continues to develop its significant gas resources in the region.
The Daydream-2 well recorded a maximum gas flow rate of 2.6 million standard cubic feet per day (MMSCFD), with a stabilized flow rate of 1.0 million cubic feet per day (MMCFPD). The company attributes the lower stabilized rate to issues such as condensate or water banking, which can be addressed in future operations. Despite this, the well has been suspended for future gas production and Elixir plans to apply for a retention lease, known as a Potential Commercial Area (PCA), which provides up to 15 years of tenure.
These results are encouraging, with Elixir reporting a 328% increase in contingent gas resources and a 180% rise in prospective resources. The Daydream-2 well delivered raw gas with low CO2 levels, using innovative extraction techniques that have attracted support from government research and development initiatives.
Looking ahead, Elixir Energy is preparing for its next phase of exploration with plans for the Daydream-3 well. This continued progress contributes to the company's efforts to further de-risk its significant gas resource base in Queensland.
Elixir Energy is advancing its gas exploration efforts with strong results from Daydream-2, setting the stage for further development and expansion in the Taroom Trough.
