Elixir (ASX:EXR) freed to chase more gas in North Queensland

Elixir (ASX:EXR) freed to chase more gas in North Queensland

January 18, 2024 Off By Rueben Hale

Australian company Elixir Energy is confidently seeking new gas plays near its successful Daydream-2 well in Queensland, now that it has access to a rig.

The company will use a comprehensive and detailed diagnostic fracture injection test to identify the extent and thickness of potentially gas-saturated sandstone reservoirs over the extensive project area.

Last year, just days before Christmas, Elixir positioned the wellhead at Daydream-2, freeing up its rig for further exploration.

The testing program injects small volumes of fluid into carefully selected zones to measure and calibrate the in-situ earth stress, formation permeability, and pore pressure over 4 to 8 weeks.

According to the company, an extensive stimulation testing program is essential for an optimal stimulation plan to unlock the gas resources that have been discovered.

Elixir’s technical team will undertake DFITs into five separate zones, including the recently identified permeable zone.

It plans to incorporate the sandstones into its stimulation testing regime, which will begin at the end of the month with the rigging up of a coiled tubing unit on location.

“The next stage of Elixir’s Daydream-2 well program is now imminent, with the expected arrival on site of equipment for the initial stimulation and testing phase in around a fortnight,” Elixir Managing Director Neil Young said.

“Our technical team’s analysis to date indicates a potential new play that could be extensive,”

“Our next stages of work are following to test that, starting with the imminent, comprehensive DFIT program.”

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Equipment and proppants will arrive on-site in approximately two weeks for the initial stimulation and testing phase.

The DFIT process will be used for the main stimulation program.

About Elixir Energy

Elixir Energy Limited (ASX: EXR) is an ASX-listed gas exploration and development company. It is currently focused on three main projects:

Mongolian Gas – Elixir Energy’s most mature current asset is its 100% owned Nomgon IX Coal Bed Methane (CBM*) Production Sharing Contract (PSC) project in the South Gobi region of Mongolia.

Mongolian Hydrogen and Green Energy – Elixir Energy has established a new wholly owned subsidiary, GOH Clean Energy LLC in February 2021 to pursue renewable energy ventures, including hydrogen and solar.

Queensland Gas – In August 2022, Elixir Energy acquired a 100% interest in petroleum exploration permit ATP 2044 in Queensland, via the acquisition of special purpose vehicle EnergyCapture Pty Ltd (now named the Grandis gas Project).

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