Elixir (ASX:EXR) drill further into Daydream-2
November 23, 2023Elixir Energy has successfully drilled the intermediate section of its Daydream-2 gas well to 2915 metres and acquired the logs for its Origin Energy deal as it looks to realise the massive potential of an emerging Taroom Trough energy Super Basin in Queensland.
Super Basins have become a completely new paradigm for the oil and gas industry, and Elixir has staked its claim on a Grandis Gas Project encircled by major conventional operations who will be looking closely at a junior neighbour with a new idea to unlock a multi-trillion-cubic-feet gas play.
Origin Energy paid a million dollars to Elixir for an information sharing agreement, and if Daydream-2 flows gas from the deep coals, it is likely to offer a very large material increase to the existing contingent resource.
Elixir Managing Director Neil Young said the drilling continues to go very well, and the company was on track to meet its one month estimate to reach total depth.
“This week we successfully obtained logs for Origin Energy for its carbon capture and storage project in the region – demonstrating the emerging ‘Energy Super Basin’ that we consider the Taroom Trough will become,” Mr Young said.
Super Basins
The interest in Elixir’s operations is understandable, with Super Basins commonly holding multiple operators forming a competitive, but communal interest over the onshore Super Basins estimated to hold around 859 billion BOE of incremental technically recoverable resources.
Gas is in the spotlight, particularly in Australia, to act as a bridge and backup between fossil fuels and renewables, and the hugely resourced Super Basins could serve as a massive supply disruptor for global energy prices.
The concept has made geoscientists think differently about petroleum basins, and an Elixir success at Grandis would have implications reaching beyond its share price in the Taroom Trough.
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