Elixir Energy has verified gas flow from Daydream-2 and is making arrangements for its next well

2 min read | October 08, 2024 05:40 AM PDT | By Team Kalkine Media

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Elixir Energy has verified gas flow from Daydream-2 and is making arrangements for its next well — Image source: Shutterstock

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Highlights:

Elixir Energy Ltd has confirmed gas flow from the Daydream-2 well at Project Grandis, with five out of six stimulated zones successfully producing gas, including deep coal zones.
The testing program recorded a maximum gas flow rate of 2.6 million standard cubic feet per day, with a stabilised rate of 1.0 million cubic feet per day.
The company plans to apply for a retention lease (Potential Commercial Area) following the successful completion of all licence commitments for ATP 2044, facilitating further development over a 15-year tenure.

Elixir Energy Ltd {OTC:ELXPF} has provided an operational update from its Daydream-2 well at Project Grandis in Queensland’s Taroom Trough, confirming successful gas flow from the well. Managing Director Neil Young discussed the testing program, which concluded with five out of six stimulated zones producing gas for the first time in deep coal zones.

The well has been suspended for future gas production after meeting all licence commitments for ATP 2044. Following this success, Elixir intends to apply for a retention lease, known as a Potential Commercial Area (PCA), which allows for a tenure of up to 15 years.

The testing recorded a maximum gas flow rate of 2.6 million standard cubic feet per day (MMSCFD), with a stabilised rate of 1.0 million cubic feet per day (MMCFPD). The lower stabilised flow rate is attributed to condensate or water banking, a condition that can be addressed in subsequent operations. This appraisal well significantly de-risks the company's substantial gas resources and lays the groundwork for the upcoming Daydream-3 well.

Furthermore, Elixir's recent results indicate a remarkable 328% increase in contingent resources and a 180% increase in prospective resources. The Daydream-2 well delivered raw gas with low CO2 levels and utilized innovative extraction techniques, garnering government research and development support. This development highlights Elixir Energy's commitment to advancing its projects and meeting the growing demand for gas in Australia.

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