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Elixir Energy (ASX:EXR) has achieved a significant milestone with the successful flow of gas to the surface from its Daydream-2 well, located in Queensland's Grandis asset area.
Shares of Elixir Energy experienced a notable increase of nearly 15%, reaching 16 cents per share as per Cboe live pricing at 10:45 AM AEST. The announcement has generated substantial interest on HotCopper.
The drilling operation, partially funded by the Federal Government, has resulted in the first flow from the top-most stimulated coal zone at Daydream-2. This development marks the commencement of efforts towards establishing an initial contingent resource.
Additionally, Elixir Energy has highlighted a noteworthy achievement for enthusiasts in the resources sector. The successful gas flow from Daydream-2 represents the deepest coal body in Australia to have achieved this milestone, with the coal zones ranging from 3,678 meters to 3,786 meters in depth.
The flow was reported to be unassisted. The next steps involve geotechnical teams removing six plugs from the Permian-age section of Daydream-2, followed by a comprehensive flow test.
Elixir Energy’s Managing Director, Neil Young, commented on the achievement, stating, “This is a fantastic outcome for Elixir and the overall Taroom Trough. Demonstrating that gas can be flowed to the surface is a significant step forward, marking the beginning of a journey to develop substantial new gas resources critical for Australia’s needs.”
