Elixir Energy (ASX:EXR) successfully achieves first gas flow from deep coals in Taroom Trough, Queensland

Elixir Energy Limited (ASX:EXR) has announced a significant milestone in its Project Grandis, located in Queensland’s Taroom Trough.

Daydream-2 well has successfully flowed gas to the surface from deep coal seams, marking a major achievement in the project’s development.

This event is particularly notable as it represents the first time that gas has been flowed from deep coals in the Taroom Trough.

The gas flow was unassisted and occurred through a full well-bore of water from a zone of coal seams situated between 3,678 and 3,786 meters below the surface.

This is also the deepest coal to have flowed gas to the surface in Australia, making it a historic first for the country’s energy sector.

Successful flow from these deep coals is a key objective that Elixir had set for the Daydream-2 well. This outcome allows the company to move forward with confidence to the next phase of their exploration and development program.

Highlights:

• First gas flow: Gas flowed to the surface from the uppermost stimulated coal zone in the Daydream-2 well.
• Historic achievement: This is the first recorded instance of gas flowing from deep coals in the Taroom Trough and the deepest coal flow recorded in Australia.
• Resource certification: Elixir will now collaborate with independent resource certifiers to obtain an initial contingent resource certification from these deep coals.

In its previous ASX announcement on 21 February 2024, Elixir Energy outlined its internal estimates of the prospective resources in the Permian coals within ATP 2044. The 2U (mid case) prospective resource was estimated to be 3,603 billion cubic feet.

The successful flow of gas to the surface is a crucial step in converting these prospective resources into contingent resources, which will further solidify the commercial potential of the Taroom Trough’s deep coals.

Elixir’s next steps involve milling out the plugs separating the six stimulated zones within the Permian section of the well, followed by a comprehensive flow test from all zones combined.

The timeline for these subsequent tests will depend on several factors, including the flow-back of stimulation fluids and other operational variables, and is expected to take several weeks.

Neil Young, Managing Director of Elixir Energy, expressed his enthusiasm about the breakthrough, stating, “This is a fantastic outcome for Elixir and the overall Taroom Trough. It has long been recognized that the deep coals here contain many trillions of cubic feet of gas in place – and now we have demonstrated that some part of that can be flowed to surface. We consider this just the start of an incredible journey of bringing on the very large new sources of gas that Australia vitally needs.”

As Elixir Energy continues to develop its Project Grandis, the company is positioning itself at the forefront of a new era of gas production in Australia, with the Taroom Trough’s deep coals showing significant promise for future energy supply.

For further details, Elixir Energy encourages stakeholders to stay updated through official channels and anticipate forthcoming announcements as the project progresses.

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