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Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on the preparations for the Daydream-2 appraisal well located in its 100% owned Grandis Gas Project in Queensland’s Taroom Trough.
HIGHLIGHTS
- Well site and access road civils work completed
- Water well production casing in place
- Surface conductor installed prior to rig arrival
- Well due to spud in first few weeks of November
Construction of the well pad and upgrade of pre-existing access roads for Daydream-2 has now been completed.
The drilling of an on-site water well has been successful, with the target formation encountered at 1,006 metres. This formation initially free flowed, which is a positive sign for water productivity. Production casing has now been cemented in place.
The drilling of the water well provided useful offset geological information, allowing Daydream-2’s surface conductor to be installed in the concrete cellar at the well pad prior to the arrival of the rig. This is an upfront saving of 2-3 days of rig time and associated spread rate costs.
The high pressure rated blow-out preventer (BOP) that Elixir requested the drilling contractor to procure for the well has arrived in Australia and has now been successfully pressure tested.
The latest advice from Elixir’s drilling contractor SLB (previously known as Schlumberger) is that the contracted rig SLR 185 will be released by its current operator in the first week of November and will be mobilized to the Daydream-2 site immediately thereafter. It will then spud within a week after that.
Conductor set for Daydream-2
Elixir’s Managing Director, Mr Neil Young, said: “The spud of the Daydream-2 well now only a few weeks away, with strong progress being made on all the required fronts to deliver what will be the highest impact well in Elixir’s history. We look forward to providing the market with regular updates on our progress in the weeks and months to come.”
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EXR:AU
Elixir Energy
Overview
Elixir Energy (ASX:EXR) is a gas exploration and development company currently focused on its portfolio of natural gas assets in Queensland, Australia and Mongolia. As an early mover in both areas, Elixir Energy has been the first company ever to free-flow gas from the deep Taroom Trough in Queensland and flow gas of any description in Mongolia.
Elixir Energy’s Grandis Gas project in Queensland is located in the Taroom Trough in the Southern Bowen Basin, where Australia’s premier physical and commercial gas hub – Wallumbilla – is immediately adjacent. Market factors are now driving new rounds of drilling in the Taroom Trough contributing to its reputation as an emerging energy super basin with major electricity as well as gas infrastructure.
A successful free-flowing test was conducted on the Lorelle Sandstone and has indicated it could produce a commercial flow rate of gas, with the breakeven commercial initial flow rate estimated at 2.5 million cubic feet per day.
Gas flow from Stage 1 Lorelle Sandstone post stimulation
Elixir Energy’s Nomgon coal-bed methane (CBM) project is located in Mongolia.
The Nomgon CBM project is in the South Gobi region of Mongolia and on the Chinese/Mongolian border. The ideal location of the asset provides access to excellent infrastructure, including planned pipelines and local mines as customers. The Nomgon project includes a CBM pilot production plant, which flowed gas in its early stages and is now moving to progressively de-water with a view to building up a sustained gas flow rate.
The company is led by a highly experienced team with direct histories in Queensland, Australia and Mongolia and expertise in the natural resources industry, community engagement and working with government stakeholders.
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Early-mover in natural gas exploration and appraisal in Australia and Mongolia.