Elixir (ASX:EXR) grows Grandis gas to 1297 billion cubic feet in Queensland quest

Elixir (ASX:EXR) grows Grandis gas to 1297 billion cubic feet in Queensland quest

May 27, 2024 Off By Jack Baker

Elixir Energy drilling has returned a large increase in contingent resources, elevated by 328 per cent and now standing at 1297 billion cubic feet of gas within its fully owned Grandis Gas project in Queensland.

Successful sandstone testing which deepened the lowest known gas, and an improved sandstone reservoir development yielded the independently certified increase.

Final results after stimulation and flow testing will be accounted by another certification, and the project’s contingent resources are yet to take stock of prospective coal resources that are marked for stimulation and production testing over the coming months.

“We are naturally delighted with the ongoing material build-up of the very significant contingent resources in our exceptionally well-located Project Grandis,” Elixir Managing Director Neil Young said.

“As our appraisal program resumes in the next month or so, the success case should deliver yet more substantial increases.”

The energy explorer came to a Wallumbilla gas hub surrounded by major operations with a new idea for multiple trillions of cubic feet of unconventional gas, and results have continued to surpass its expectations.

Elixir believes gas from the Lorelle Sandstone at Grandis was the deepest Australian unsimulated onshore flow east of the Perth Basin and a discovery with wider consequences for the nation’s energy market.

The asset’s potential is as a new Queensland gas play well placed to feed into existing infrastructure surrounding the Taroom Trough.

Halliburton (NYSE:HAL), Origin Energy (ASX:ORG), and the Australian Government have entered into funding and research and development deals with the junior company, which expects to shortly resume the appraisal program after operational delays.

The flowrate from the ambitious project remains the key contingency.

While 1.3 million cubic feet a day flowing from the lowest sandstone was certainly encouraging, the upper zones remain untested, and Elixir will soon have more specific time frames on a march towards production.

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