Elixir (ASX:EXR) grows Grandis Gas with Queensland innovation

Elixir Energy has finished desorption analysis on coal cuttings from its Daydream-2 well and marked a large increase to prospective resources that now stand at 3.6 trillion cubic feet at the Grandis Gas Project in Queensland’s Bowen Basin.

The Daydream-2 samples taken while drilling its primary unconventional targets were analysed by ALS, with their very gas-high content greatly exceeding expectations.

The results have allowed a large new resource to stand aside the hefty quantities of prospective resources previously found solely in the coal fracture system.

Elixir did expect low carbon dioxide levels, and that was confirmed with a measurement of around one per cent – a level requiring no processing before sales into the pipeline.

Given the exceptional adsorbed gas content, an entire gas-saturated Permian section, and natural permeability offering a direct conduit from the gassy coals to sandstone reservoirs, Elixir believe the work has significantly enhanced the prospectivity of its fully owned project.

Elixir came to Grandis with a novel idea to unlock a multi-TCF asset and believes conducting coal content analysis on deep formations is an Australian first and a tribute to the innovative mindset of its internal team and service providers.

The company now aims to begin converting the gas into discovered contingent resources in a scant few months and is confident a reassessment of the previous sandstone resources will also offer a substantial raise.

The unconventional Grandis gas play has captured industry attention, with Elixir grabbing funding and inking research and development deals with Halliburton, Origin Energy and the Australian Federal Government.

An unexpected intersection of a deep, permeable gas zone flowing to surface without stimulation stirred more excitement and industry attention late last year, and work on almost every other front so far has surpassed Elixir’s predictions.