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Brossard, Quebec, August 29, 2024 TheNewswire Charbone Hydrogen Corporation (TSXV: CH;
Condor Energy Ltd (ASX: CND) (Condor or the Company) has completed targeted reprocessing of legacy 3D seismic data on its 4,585km2 Tumbes Basin Technical Evaluation Agreement (TEA or block) offshore Peru.
Highlights
- Reprocessing of a total of 1,000km2 of legacy 3D seismic data across three leading prospects completed
- Data quality vastly improved, significantly enhancing oil and gas prospectivity
- Resource estimation of main prospects underway
- More than 20 prospects and leads located outside of the reprocessing areas have been identified - prospect screening and ranking process commenced
The block contains over 3,800km2 of legacy 3D seismic data, with Condor reprocessing an aggregate of 1,000km2 covering the two high potential oil prospects (Raya and Bonito) and the Piedra Redonda gas field (Figure 1).
The contract for reprocessing was awarded to Advanced Geophysical Technology (“AGT”) of Houston who have now delivered final products including Pre-Stack Time Migration and Pre-Stack Depth Migration volumes as well as derivative products used for Quantitative Interpretation (“QI”) workflows. These workflows provide enhanced insights into the lithology of subsurface rocks and the fluids they may contain.
Condor is pleased with the results of the reprocessed volumes which have improved both the quality of the seismic image and the frequency content (Figure 2). These improvements greatly enhance the quality of seismic interpretation.
Figure 2 – The reprocessed data show improvements in resolution, structural imaging and frequency content
Significantly, the production of Pre-Stack Depth Migrated volumes offers a valuable tool which allows for more accurate structural imaging and enables interpreters to work in depth compared to the original data which had only been provided in Two Way Time (“TWT”).
Condor has commenced a review of the Raya and Bonito prospects and the Piedra Redonda discovered gas field using the new reprocessed seismic and is confident that the improved 3D seismic data will enable the formulation of Resource estimates.
The Company has also identified more than 20 additional prospects and leads which lie outside of the areas selected for reprocessing, with the objective of selecting the most prospective features through a final prospect screening and ranking process.
About the Tumbes Basin TEA
A Technical Evaluation Agreement (TEA) is an oil and gas contract that provides the holder with the exclusive right to negotiate a Licence Contract over the TEA area.
In August 2023 the Company, with its partner Jaguar Exploration, Inc. (Jaguar), entered into the 4,858km2 TEA offshore Peru with Perupetro. The TEA area covers almost all of the Peruvian offshore Tumbes Basin in shallow to moderate water depths of between 50m and 1,500m.
The under-explored block is surrounded by multiple historic and currently producing oil and gas fields and contains the undeveloped shallow water Piedra Redonda gas field which contains ‘Best Estimate’ Contingent Resources of 404 Bcf (100% gross) and ‘Best Estimate’ Prospective Resources of 2.2 Tcf# (gross unrisked) of natural gas.
Condor is 80% holder of the TEA, with Jaguar and its nominees holding the remaining 20%.
#Cautionary Statement: The estimated quantities of gas that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.
Click here for the full ASX Release
This article includes content from Condor Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Condor Energy
Overview
Condor Energy (ASX:CND) is an Australia-based oil and gas exploration company focused on developing its recently acquired Tea LXXXVI oil and gas block in Peru, located in the Tumbes basin and near the prolific Talara basin. The project’s hydrocarbon exploration potential leverages Peru’s long history as an oil and gas producer dating back to the late 19th century when the country drilled its first well more than 150 years ago.
Hydrocarbon fields in the Tumbes and Talara basins have contributed over 1.4 billion barrels of domestic oil production and 1.7 trillion cubic feet (TCF) of natural gas production. The Talara basin itself has cumulatively produced more than 1.6 billion barrels of oil and is surrounded by multiple historic and currently producing oil and gas fields.
Condor Energy’s Tea LXXXVI project is the result of a technical evaluation agreement (TEA) with the Peruvian National Agency of Hydrocarbons (Perupetro), which provides Condor Energy and its partner, US-based oil and gas exploration company Jaguar Exploration, the exclusive right for greenfield exploration activities over the TEA area. Condor Energy holds an 80-percent interest in the asset with the remaining 20 percent held by Jaguar.
The project comprises a 4,858-square-kilometer oil and gas block in proven offshore hydrocarbon-bearing basins in Peru, including the prolific Talara basin. Offshore, Peru remains dramatically underexplored and has immense potential for hydrocarbon plays.
Considering the block's potential, Condor Energy has appointed a world-class technical team with more than 200 years of collective experience to develop the TEA LXXXVI asset. Several of the newly appointed team members have previously worked on the area covered by Condor Energy, which should help in fast-tracking the development of the block. The team comprises proven oil finders with collective discoveries of more than 480 million barrels of oil equivalent of 2P reserves and more than 400 million barrels of oil equivalent in contingent resources in Peru and Colombia.
The experience of working in the TEA LXXXVI property and surrounding fields will be vital for Condor Energy to expedite the understanding and evaluation of the asset.
Company Highlights
- Condor Energy is an Australia-based oil and gas exploration company focused on developing its recently acquired oil and gas block in Peru, TEA LXXXVI
- The TEA LXXXVI project comprises a 4,858 square-kilometer oil and gas block in the proven Tumbes hydrocarbon-bearing basin offshore Peru. Condor Energy holds an 80 percent interest in the asset with the remaining 20 percent held by US-based oil and gas exploration company, Jaguar Exploration.
- The block is in proximity to multiple historic and current producing oil and gas fields. This includes the Corvina oil field, which has produced at rates of up to 4,000 barrels of oil per day, and the Alto-Pena Negra oil field which is currently producing around 3,000 barrels of oil per day, along with a total historical production of more than 143 million barrels of oil. This increases confidence regarding the hydrocarbon exploration potential of TEA LXXXVI.
- The company completed targeted reprocessing of legacy 3D seismic data on its 4,585 sq. km. Tumbes Basin Technical Evaluation Agreement (TEA or block) offshore Peru.
- A world-class technical team with more than 200 years of collective experience was appointed by Condor Energy to develop and advance the TEA LXXXVI offshore block.
- The company's other projects include the Georgina Basin project (EP-127) and the Sasanof Prospect (WA-519-P).
Key Project
TEA LXXXVI Project
This oil and gas block is located on the northwest coast of Peru in the Tumbes basin, in water depths that range from 100 meters to 1,500 meters. The project spans 4,858 square kilometers and is surrounded by historical and current producing oil and gas fields. The block includes the Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day. In the south is the Talara basin, which is one of the most productive basins in Peru having produced more than 1.6 billion barrels of oil. To the southeast is the Alto-Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day and with a total historical production of more than 143 million barrels of oil.
The project benefits from excellent infrastructure, including a refinery only 70 kilometers away.
Project Highlights:
- Undrilled Area in a Proven Hydrocarbon Basin System: Exploration in the early 1970s showed the presence of oil. Historical data from 2D seismic surveys and more than 3,800 square kilometers of 3D seismic surveys are available for processing.
- Seismic Reprocessing Targeting Completed: Seismic reprocessing targeting has been completed which targeted reprocessing of legacy 3D seismic data on its 4,585 sq. km. Tumbes Basin Technical Evaluation Agreement (TEA or block) offshore Peru. A total of 1,000 sq. km. of legacy 3D seismic data across three leading prospects has been completed significantly enhancing oil and gas prospectivity. Resource estimation of main prospects underway.
- Piedra Redonda Contains ‘Best Estimate’ Contingent and Prospective Resources: Covered by the company’s license area is the Piedra Redonda that contains ‘best estimate’ contingent resources of 404 billion cubic feet plus best estimate prospective resources of 2.2 trillion cubic feet of gas audited by Netherland, Sewell & Associates.
- High Potential Bonito, Volador and Raya Prospects:
- Exploration activities showed additional deeper stacked targets identified in the proven oil-bearing Zorritos Formation at Bonito.
- The company also identified the large-scale stratigraphic and structural trap potential (up to 59 square kilometers of the Raya prospect and selected an area of 400 square kilometers as the second reprocessing area.
- The 40 square-kilometer Volador prospect was identified by anomalously bright amplitudes within the Cardalitos Formation, which unconformably overlies the Zorritos Formation.
Management Team
Matt Ireland - Non-executive Chairman
Matt Ireland, a partner at Steinepreis Paganin, is a highly experienced corporate and commercial lawyer with extensive experience in corporate governance and compliance matters as well as in mining and oil & gas transactions including joint venture agreements, M&A transactions, capital raisings and asset acquisitions/disposals. Ireland graduated from Murdoch University with a Bachelor of Laws and a Bachelor of Commerce in 2002 and was admitted to the Supreme Court of New South Wales in 2003 and the Supreme Court of Western Australia in 2004.
Scott Macmillan - Non-executive Director
Scott Macmillan is the managing director and founder of Invictus Energy Limited (ASX:IVZ) which, since listing on the ASX in 2018, has seen Invictus grow substantially in value from a microcap frontier explorer to an emerging oil and gas developer. Invictus Energy is an oil and gas company opening one of the last untested large fronter rift basins in onshore Africa. Macmillan is a reservoir engineer with more than 15 years of experience in oil and gas exploration, field development planning, reserves and resources assessment, reservoir simulation, commercial valuations and business development. Before founding Invictus, Macmillan worked as a senior reservoir engineer at Woodside Energy and AWE, during which time he participated in large offshore oil and gas field operations and the development of the Waitsia Gas Field.
Ricardo Garzon Rangel – Non-executive Director
Ricardo Garzon Rangel is an industrial engineer and energy economist with over 15 years international experience in oil and gas and mineral exploration projects. As a dual Australian and Colombian citizen, Garzon Rangel has a depth of experience in Latin America and has a proven ability to establish relationships with governments and other industry participants.
Garzon Rangel has a Bachelor degree of Industrial Engineering from Universidad Distrital Francisco Jose de Caldas in Bogotá Colombia, an MSc in Energy Economics and Management from Curtin University and is a member of the Society of Petroleum Engineers (SPE).
Lloyd Flint – Company Secretary
Lloyd Flint, BAcc, FINSIA and MBA is a chartered accountant with over 25 years’ experience in the corporate and financial services arena. He has held a number of management and senior administrative positions as well as providing corporate advisory services as a consultant to corporate clients.
Daydream-2 Operations Update
HIGHLIGHTS
- Production logging tool (PLT) confirms contribution from upper zones
- CTU to return to site to clean out well
The Daydream-2 well has run a production logging tool (PLT) over the majority of the key stimulated zones. The run confirmed two key results from the well:
1. The upper zones are making a contribution to the flow; and
2. The lower zone is dominating the flow - fluid and some proppant in the bottom of the wellbore across the deeper zones is hampering the optimal flow rate.
Wireline rigged up on Daydream 2
As foreshadowed in the last operations update, Elixir will now bring the Coil Tubing Unit (CTU) that that is currently with Elixir’s neighboring Operator back to the well-site to undertake nitrogen lift and clean-out work.
That is anticipated to be before the end of the month (subject to the pace of operations of that neighbour). The flow testing phase of operations will be finalized thereafter.
Elixir’s Managing Director, Mr Neil Young, said: “It is very pleasing to have the PLT confirm flows from the upper stimulated zones in Daydream-2. Although a little bit frustrating, the slight delay as we wait for the return of the CTU is in fact reflective of the hectic pace of multi-operator activity in the Taroom Trough, which we can only see accelerating as the importance of this region to Australia’s gas supplies is increasingly recognised.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Charbone Hydrogen Announces Q2 2024 Financial Results
OTCQB: CHHYF; FSE: K47) (the "Company" or "CHARBONE"), North America's only publicly traded pure-play green hydrogen company, is pleased to announce the financial and operating results for the three and six-month periods ending June 30, 2024.
Forward progress continues to be reflected in both 2024 quarter-end financials and in project advancements, as CHARBONE's priority plan to start producing green hydrogen during the second half of 2024 remain on track.
Q2 2024 HIGHLIGHTS:
Spending decreased 19% to $1,243,876 in the six-month period ending June 30, 2024 compared to $1,536,019 in the six-month period ending June 30, 2023 (activities refocus and tightening of general and administrative expenses).
Revenue increased 48% to $182,143 in the six-month period ending June 30, 2024 compared to $123,391 in the six-month period ending June 30, 2023 (generated from the Wolf River acquisition on December 1, 2022).
The Company has closed a private financing for gross proceeds amounting to $849,622, Units for debt settlement of $352,214 and exercises of warrants/options of $245,878;
The Company also received an additional $100,000 in 2024 from Finexcorp secured convertible debentures at a deemed price of $0.10 and agreed on an extension of the $1.2 million CAD 14% (now 12%) secured convertible debentures maturity date that were issued by the Company in reducing significantly the current liabilities and with better terms; and
The Company made acquisitions of storage hydrogen equipment and upgraded its Sorel-Tracy electrolyzer capacity to 1.75MW.
Located near Montreal, Quebec, CHARBONE's Sorel-Tracy Green Hydrogen Project will serve as the Company's flagship facility, giving CHARBONE a first-mover advantage with plans to commence production later this year.
"Management's efforts to shore up and strengthen our balance sheet have been focused and deliberate. We've made significant cost-reduction headway in recent months, while still driving forward with our near-term plans to deliver a network of North American green hydrogen production facilities," said Benoit Veilleux, Chief Financial Officer and Corporate Secretary of CHARBONE . "The recent discussion with strategic partners is advancing well to help to execute CHARBONE's growth potential with our financial partners and investors, and the team feels supported and is advancing on all fronts."
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Units for debt
Further to its news release dated May 22, 2024 announcing the closing of Units for debt settlement for a total of $302,213 of suppliers' payables, the Company is pleased to announce that it has received all approval from TSX Venture Exchange to issue the shares and warrants and can confirm settlement of the debts. Also, the nature of services provided were $222,213 for accounting fees, $40,000 for legal fees and $40,000 for consulting work.
About Charbone Hydrogen Corporation
CHARBONE is an integrated green hydrogen group focused on delivering a network of modular green hydrogen production facilities across North America. Using renewable energy sources to produce green (H2) dihydrogen molecules and eco-friendly energy solutions for industrial, institutional, commercial and future mobility users, CHARBONE plans to scale and deliver green hydrogen production facilities in both the US and Canada by 2024, with an additional 14 facilities planned by 2030. CHARBONE is the only publicly traded pure-play green hydrogen company with common shares trading on the TSX Venture Exchange (TSXV: CH); the OTC Markets (OTCQB: CHHYF); and the Frankfurt Stock Exchange (FSE: K47). For more information, please visit www.charbone.com
Forward-Looking Statements
This news release contains statements that are "forward-looking information" as defined under Canadian securities laws ("forward-looking statements"). These forward-looking statements are often identified by words such as "intends", "anticipates", "expects", "believes", "plans", "likely", or similar words. The forward-looking statements reflect management's expectations, estimates, or projections concerning future results or events, based on the opinions, assumptions and estimates considered reasonable by management at the date the statements are made. Although Charbone believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on forward-looking statements, as unknown or unpredictable factors could cause actual results to be materially different from those reflected in the forward-looking statements. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Corporation's Filing Statement dated March 31, 2022, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements.
Except as required under applicable securities legislation, Charbone undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Contacts Charbone Hydrogen Corporation | ||||
Dave B. Gagnon | ||||
Chief Executive Officer and Chairperson of the Board | ||||
Telephone: | +1 438 844-7170 | |||
Email: | ||||
Daniel Charette | ||||
Chief Operating Officer | ||||
Telephone: | +1 438 800-4946 | |||
Email: | ||||
Benoit Veilleux | ||||
Chief Financial Officer and Corporate Secretary | ||||
Telephone: | +1 438 800-4991 | |||
Email: | ||||
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Charbone Hydrogene Annonce Les Resultats Financiers T2 2024
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Brossard (Québec), le 29 août 2024 TheNewswire - CORPORATION CHARBONE HYDROGÈNE (TSXV: CH OTCQB: CHHYF, FSE: K47 ) (« Charbone » ou la « Société »), la seule société d'Amérique du Nord cotée en bourse spécialisée dans l'hydrogène vert, est heureuse d'annoncer les résultats financiers et opérationnels pour les périodes de 3 et 6 mois se terminant le 30 juin 2024.
Les progrès continuent de se refléter à la fois dans les états financiers de fin de trimestre 2024 et dans l'avancement des projets, alors que les plans prioritaires de Charbone visant à commencer à produire de l'hydrogène vert au cours du second semestre 2024 demeurent sur la bonne voie.
FAITS SAILLANTS T2 2024 :
Les dépenses ont diminué de 19% à 1 243 876 $ dans la période de six mois se terminant le 30 juin 2024 comparativement à 1 536 019 $ dans la période de six mois se terminant le 30 juin 2023 (recentrage des activités et resserrement des frais généraux et administratifs).
Les revenus ont augmenté de 48% pour atteindre 182 143 $ dans la période de six mois se terminant le 30 juin 2024, contre 123 391 $ dans la période de six mois se terminant le 30 juin 2023 (générés par l'acquisition de Wolf River le 1 er décembre 2022).
La Société a clôturé un financement privé pour un produit brut s'élevant à 849,622 $, des unités pour le règlement de dettes de 352 214 $ et l'exercice de bons de souscription/options pour 245 878 $ ;
La Société a également reçu un montant supplémentaire de 100 000 $ en 2024 de Finexcorp en débentures convertibles garanties à un prix réputé de 0,10 $ et convenu d'une prolongation de la date d'échéance des débentures convertibles garanties à 14 % (maintenant à 12 %) de 1,2 million de dollars canadiens qui ont été émises par la Société, réduisant considérablement les passifs à court terme et avec de meilleures conditions ; et
La Société a fait l'acquisitions d'équipement de stockage d'hydrogène et a augmenté la capacité de son électrolyseur de Sorel-Tracy à 1,75 MW.
Situé près de Montréal, au Québec, son projet d'hydrogène vert à Sorel-Tracy, servira d'installation phare de la Société, donnant à Charbone l'avantage du premier arrivé avec la production débutant plus tard cette année.
"L es efforts de la direction pour consolider et renforcer notre bilan ont été ciblés et délibérés. Nous avons réalisé d'importants progrès en matière de réduction des coûts au cours des derniers mois, tout en poursuivant nos plans à court terme visant à mettre en place un réseau d'usines de production d'hydrogène vert en Amérique du Nord , a déclaré Benoit Veilleux, Chef de la direction financière et secrétaire corporatif de Charbone. " Les récentes discussions avec les partenaires stratégiques avancent bien pour aider à exploiter le potentiel de croissance de Charbone avec nos partenaires financiers et investisseurs, et l'équipe se sent soutenue et avance sur tous les fronts . "
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Unités pour règlement de dettes
À la suite de son communiqué de presse daté du 22 mai 2024 annonçant la clôture d'unités pour règlement de dettes pour un total de 302 213 $ de dettes de fournisseurs, la Société est heureuse d'annoncer qu'elle a reçu toutes les approbations de la Bourse de croissance TSX pour émettre les actions et les bons de souscription et peut confirmer le règlement des dettes. De plus, la nature des services fournis était de 222 213 pour frais de comptabilité, 40 000 $ pour des frais juridiques et de 40 000 $ pour des travaux de consultation.
À propos de Charbone Hydrogène Corporation
Charbone est un groupe intégré de production d'hydrogène vert axé sur le déploiement d'un réseau nord-américain d'usines de production. En utilisant des énergies renouvelables pour produire des molécules de dihydrogène (H2) et des solutions écoénergétiques et respectueuses de l'environnement aux utilisateurs industriels, institutionnels, commerciaux et de la mobilité future, Charbone prévoit déployer et livrer des usines de production d'hydrogène vert aux États-Unis et au Canada d'ici 2024, et 14 usines supplémentaires sont prévues d'ici 2030. Charbone est la seule société d'Amérique du Nord cotée en bourse spécialisée dans l'hydrogène vert avec ses actions ordinaires se négociant sur la Bourse de croissance TSX (TSXV: CH); les marchés OTC (OTCQB: CHHYF); et la Bourse de Francfort (FSE: K47). Pour plus d'information, merci de visiter www.charbone.com .
Énoncés prospectifs
Le présent communiqué de presse contient des énoncés qui constituent de « l'information prospective » au sens des lois canadiennes sur les valeurs mobilières (« déclarations prospectives »). Ces déclarations prospectives sont souvent identifiées par des mots tels que « a l'intention », « anticipe », « s'attend à », « croit », « planifie », « probable », ou des mots similaires. Les déclarations prospectives reflètent les attentes, estimations ou projections respectives de la direction de Charbone concernant les résultats ou événements futurs, sur la base des opinions, hypothèses et estimations considérées comme raisonnables par la direction à la date à laquelle les déclarations sont faites. Bien que Charbone estime que les attentes exprimées dans les déclarations prospectives sont raisonnables, les déclarations prospectives comportent des risques et des incertitudes, et il ne faut pas se fier indûment aux déclarations prospectives, car des facteurs inconnus ou imprévisibles pourraient faire en sorte que les résultats réels soient sensiblement différents de ceux exprimés dans les déclarations prospectives. Des risques et des incertitudes liés aux activités de Charbone peuvent avoir une incidence sur les déclarations prospectives. Ces risques, incertitudes et hypothèses comprennent, sans s'y limiter, ceux décrits à la rubrique « Facteurs de risque » dans la déclaration de changement à l'inscription de la Société datée du 31 mars 2022, qui peut être consultée sur SEDAR à l'adresse www.sedar.com; ils pourraient faire en sorte que les événements ou les résultats réels diffèrent sensiblement de ceux prévus dans les déclarations prospectives.
Sauf si les lois sur les valeurs mobilières applicables l'exigent, Charbone ne s'engage pas à mettre à jour ni à réviser les déclarations prospectives.
Ni la Bourse de croissance TSX ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n'acceptent de responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.
Contacts
Pour de plus amples informations, veuillez contacter :
Dave B. G agnon | ||
Chef de la direction et président du conseil d'administration | ||
Corporation Charbone Hydrogène | ||
Téléphone bureau: +1 438 844-7170 | ||
Courriel: dg@charbone.com | ||
Daniel Charette | ||
Chef de l'exploitation | ||
Corporation Charbone Hydrogène | ||
Téléphone bureau : +1 438 800-4946 | ||
Courriel: dc@charbone.com | ||
Benoit Veilleux | ||
Chef de la direction financière et secrétaire corporatif | ||
Corporation Charbone Hydrogène | ||
Téléphone bureau: +1 438 800-4991 | ||
Courriel: bv@charbone.com |
Copyright (c) 2024 TheNewswire - All rights reserved.
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Daydream-2 Operations Update
HIGHLIGHTS
- All temporary plugs successfully removed
- Well flowing gas and completion fluid with all zones open
- Production logging tool (PLT) operations to begin later this week
The Daydream-2 well has now successfully had removed all the temporary plugs between its six separate stimulated zones. The Coil Tubing Unit (CTU) that undertook the work has been released to Elixir’s neighboring Operator. The well flowed gas and completion fluid back freely to surface once it was put onto test, without the need for any assistance.
CTU preparing to move off Daydream-2 lease
The well is now in the clean-up phase of the test, flowing gas and stimulation fluid (water) with all zones open. So far, 4,300 barrels of stimulation fluid have been recovered from a total of 10,392 barrels pumped (41%).
Towards the end of the week a production logging tool (PLT) will be run in the hole. This tool will be run to improve the understanding of how much fluid is in the hole, the proportion of flow from each individual zone, and the flowing pressure from the respective zones.
Elixir anticipates that cleaning the well up completely will take several weeks, and may require the CTU to return to Daydream-2 to lift any remaining fluid in the hole before the testing program is completed. Further announcements will follow in the weeks to come as the clean-up progresses.
Elixir’s Managing Director, Mr Neil Young, said: “This final flow testing phase of the Daydream-2 program continues to go to plan. All stimulated zones are now exposed to the wellbore and we will continue to gather vital data over the weeks to come to better understand the massive potential of the multi-stacked pay zones in the Taroom Trough.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Taroom Trough Coals Flowed for First Time - Updated
HIGHLIGHTS
- Gas flowed to surface from top-most stimulated coal zone in Daydream-2
- This is the first flow from the deep coals in the Taroom Trough
- Elixir to work with its reserves certifiers for an initial contingent resource booking
The Daydream-2 well has now flowed gas to surface from the upper most stimulated zone in the well – a package of coal seams between 3,786 metres and 3,678 metres deep. The flow was unassisted and through a full well-bore of water. See Appendix 1 for ASX Listing Rule 5.30 disclosures.
Flare from coals in stimulation zone 6
This is the first flow of gas from the deep coals in the Taroom Trough and achieving this was one of the key objectives of Daydream-2. It is Elixir’s understanding that this is the deepest coal to have flowed gas to surface in Australia.1
Achieving a flow from the coals is the key outcome that Elixir sought from this stage of the program, which has now moved onto its next phase.
In its ASX announcement dated 21 February 2024, Elixir set out its internal estimate of the prospective resources contained in the Permian coals in ATP 2044. The 2U (mid case) prospective resource was 3,603 billion cubic feet. See Appendix 2 for restatement of Flowing gas to surface is a key trigger to commence converting prospective resources into contingent resources. Elixir will now work with its independent resource certifiers to obtain an initial contingent resource certification from the deep coals.
The process of conversion of all of the prospective resources will require more data from new wells which achieve a similar coal flow outcome in the broader Taroom Trough.
The next phase of the Daydream-2 program involves milling out all the plugs that separate the six separate stimulated zones in the Permian section of the well. A flow test will then be conducted from all the zones together.
The timing of any announcements to the market on this flow test will depend on factors such as the period of the flow-back of stimulation fluid, multi-fluid slugging behaviours, etc, and will likely take some weeks.
Recent stimulation operations at Daydream-2
Elixir’s Managing Director, Mr Neil Young, said: “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 place2 (see Appendix 3 for disclosures required under ASX Listing Rule 5.25.3) – and now we have demonstrated that some part of that can be flowed to surface. We consider this is just the start of an incredible journey of bringing on the very large new sources of gas that Australia vitally needs.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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