Elixir (ASX:EXR) on rails to wake Daydream-2

Elixir (ASX:EXR) on rails to wake Daydream-2

November 2, 2023 Off By Tom Duggan

The rig has been formally released, is mobilising to the Grandis Gas Project, and Elixir Energy is officially on rails for a spudding of the Daydream-2 gas well early next week in the Bowen Basin of southeast Queensland.

Grandis holds an initial contingent resource of 365 billion standard cubic feet of gas and given previous estimates of prospective resources were only based on gas in place estimates within the coal fracture system, a deep coal flow from Daydream-2 is likely to provide a large material increase.

And Elixir will be joined by Shell, providing further encouragement that it is in the right spot for gas with the multinational now drilling in a tenement immediately to the west.

“With the formal release of SLR 185 to Elixir the spud of Daydream-2 is now only a few days away. Two large rigs will then be drilling contemporaneously to further open up the Taroom Trough – a real sign of its potential importance for domestic and international markets,” Elixir Managing Director Neil Young said.

The Taroom Trough area has been the focus of Australia’s coal seam gas and LNG export industry since 2014 and had its early hydrocarbon potential realised through conventional discoveries.

The source rocks are known to produce massive quantities of oil and gas, but with only a small portion trapped in conventional structures, it implied a hefty volume could be trapped in tight reservoirs, and Elixir saw an opportunity lying untouched.

And a deep discovery of gas using new understandings would come at an ideal time for an Australian domestic gas market which continues to worry over winter shortfalls.

Wesfarmers have even claimed some producers could be deliberately delaying the development of new fields to secure higher future pricing, but Elixir looks to now be firing up to claim its own and backed by the Federal Government, who will pay for 43.5 per cent of the total costs of Daydream-2.

 

EXR Map

Tenement location map

EXR.AX
ELIXIR NRG FPO [EXR]
ASX
down arrow$0.11
$0.005
4.35%

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified. 

MO and CI logo redraw Socials Profile reversed

MarketOpen is an online media business connecting companies and investors. Through its flagship MarketOpen.com.au media channel the Australian publisher’s experienced journalists cover breaking news and analysis on mining, oil and gas, technology and biotechnology companies listed on the Australian Securities Exchange and other markets. MarketOpen’s video and podcasting channels feature original interviews with Australia’s small-cap corporate leaders, while its Stock Soirée networking events, Watchlist webinars, and online events connect investors and brokers with CEOs and board members. The publisher also offers a suite of agency services to its corporate members, including media, video, podcasting and social media services, along with writing, editing, reviewing and content creation services.

Contact info

Suite 3, 47 Havelock Street
West Perth WA 6005
info@marketopen.com.au

Stewart Walters
Managing Director
stewart@marketopen.com.au
+61 414 644 166

Amanda Ellis
Editor-in-Chief
amanda@marketopen.com.au
+61 438 003 868

Important links

Follow us