Elixir (ASX:EXR) stimulates Grandis Gas to awaken Queensland Daydream

Elixir (ASX:EXR) stimulates Grandis Gas to awaken Queensland Daydream

April 19, 2024 Off By Jack Baker

Elixir Energy has welcomed the Halliburton fleet to Daydream-2 to see 16,000 hydraulic horsepower of equipment now in action to start a stimulation program at its Grandis Gas Project in Queensland’s Bowen Basin.

The campaign will target two coal zones, three tight gas zones, and the Lorelle Sandstone, from where Elixir recorded Australia’s deepest unstimulated onshore flow of gas east of the Perth Basin.

The pact with Halliburton is also a research and development alliance applying the multiple technological advancements of the past decade to Elixir’s fully owned and unconventional gas play.

Elixir Managing Director Neil Young said the company was pleased to announce the next phase of work on Daydream-2 after the mobilisation of an extensive kit to site.

“Flow testing of our six separate target zones will follow shortly thereafter. The multiple objectives of this so far very successful appraisal program will now come to fruition in only a few weeks,” he said.

“We await (results) with bated breath.”

The Energy explorer came to a Wallumbilla gas hub well proven in conventional resources with its own idea for multiple trillions of cubic feet of gas, and results have continued to surpass its expectations.

Desorption analysis on coal cuttings brought the well’s prospective resources to 3.6 trillion cubic feet, and drilling continued to show elevated gas levels exceeding pre-drill estimates.

But it was when drilling an extra hundred metres of depth for greater operational flexibility Elixir encountered a rapid increase in the rate of well penetration and a deep permeable reservoir section that offered real excitement.

It was proven no fluke, with Elixir later recording a stabilised flow of 1.3 million cubic feet a day from the 4200-to-4217-metre Lorelle section to claim an unstimulated record.

That section will be included in flow testing to follow immediately after stimulation, measuring individual and total zones as key inputs into a revised resource assessment.

Elixir is also looking beyond Daydream-2 and testing the extent and thickness of potentially gas-saturated sandstone reservoirs across the 1000 square kilometre Grandis project area which has access to infrastructure centred around Wallumbilla.

A shared location of natural gas and carbon capture and storage capabilities forms Wood Mackenzie’s super basin concept.

Elixir holds a firm view those areas can be found on its property and will increasingly be the key areas of interest for global energy investors.

Origin Energy (ASX:ORG) and Halliburton (NYSE:HAL) are two of the big names who have deals in place with the junior Australian for an insight into Grandis and will likewise keenly await the appraisal program’s next results.

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