Elixir (ASX:EXR) encounter unstimulated flow at Daydream-2

Elixir (ASX:EXR) encounter unstimulated flow at Daydream-2

December 7, 2023 Off By Tom Duggan

Elixir Energy has reached total depth at Daydream-2 and discovered an unexpected, naturally permeable gas bearing zone flowing to surface without stimulation at its fully owned Gandis Gas Project within an emerging energy Super Basin in the Taroom Trough of Queensland’s Bowen Basin.

Drilling continued to show elevated gas levels exceeding pre-drill estimates, spurring an extra hundred metres of depth for greater operational flexibility, and while drilling the extra stretch, Elixir encountered a rapid increase in the rate of well penetration.

While more work is needed to truly uncover the implications, encountering a permeable reservoir section that deep offers significant upside, and Elixir Managing Director Neil Young said flowing gas without stimulation is immensely exciting.

“Although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties,” Mr Young said.

“Furthermore, on almost every other front the well has exceeded expectations – in terms of geology, engineering, economics and project management.”

Even with a greater depth and time spent acquiring data for Origin Energy under an Information Sharing Agreement, the time and cost still came in less than budgeted for, and wireline logs will now be acquired as Elixir undertake a petrophysical evaluation.

Daydream-2 will then be cased and suspended as Elixir begin finalising its forward plan for extensive evaluation, completion, and production testing of an excitingly novel gas play in the highly productive Bowen Basin.

A new paradigm for the industry has emerged in the form of Super Basins, and Elixir Energy came into the region with a new idea to unlock a multi-trillion-cubic-feet gas play.

Elixir has secured funding from both Origin and the Australian Federal Government to keep an eye on and advance its ambitions, and the explorer will no doubt gain some more attention from its major neighbours after striking into what could prove an unexpected bounty.

Watch the gas influx circulated out of the well to the rig’s flare:

YouTube player

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