Elixir Energy

Gas Flow from Permeable Zone Provides Unexpected Upside

Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on the Daydream-2 appraisal well in its 100% owned Grandis Gas Project (ATP 2044) located in the Taroom Trough of the Bowen Basin, Queensland.


HIGHLIGHTS

  • Daydream-2 reaches Total Depth of 4,300 metres
  • Permeable gas bearing zone discovered - with gas flowed to surface without stimulation
  • Gross interval of 607 metres intersected with peak gas shows of 800 units
  • Drilled ahead of schedule and under budget

An unexpected naturally permeable gas bearing zone has been discovered – with gas flowed to surface without stimulation:

Flare at Daydream-2

Overnight Daydream-2 reached a Total Depth (TD) of 4,300 metres. This was approximately 100 metres deeper than originally planned, as the well continued to demonstrate elevated levels of gas in excess of pre-drill estimates. The deeper TD also allows for greater operational flexibility in relation to the next few phases of the Company’s appraisal plans for the well.

During the course of drilling the final 100 metres of the well, a rapid increase in the rate of well penetration (“drill break”) was encountered. This drilling break was associated with a gas influx from the formation into the well bore.

Using drilling best practice, this gas influx was circulated out of the well to the rig’s flare – see short video on the Company’s youtube channel - https://www.youtube.com/shorts/onDTRPqfwyo

The volume of gas flared was estimated at the wellsite to be approximately 50,000 cubic feet. As a result of the influx, the drilling fluid was “weighted up” and the well safely and successfully drilled to a TD of 4,300 metres.

To encounter a permeable reservoir section this deep in the well provides significant upside for Elixir’s Grandis Gas Project. Substantial further work is required to truly establish the implications of this discovery, but these could be materially positive.

During the course of drilling through the Permian strata, gas shows continued through the primary objective reservoir sections. Peaks of up to 800 units were noted, consistent with nearby wells. In total, a gross interval of 607 metres was intersected. The dominant lithologies within the interval were sandstones, coals and siltstones.

Gas shows on seismic line between Daydream-1 and Daydream-2

The well has been drilled to a total depth greater than planned, in a timeframe and at a cost less than budgeted. That was the case even allowing for time spent acquiring data for Origin Energy under the Information Sharing Agreement announced to the ASX on 6 November 2023. Origin has now paid Elixir in full for the services rendered under this Agreement.

Wireline logs will now be acquired and a petrophysical evaluation undertaken. The well will be then cased and suspended. Once all the data has been compiled, Elixir will finalise its forward plan for extensive evaluation, completion and production testing of this well.

Elixir’s Managing Director, Mr Neil Young, said: “Flowing gas without stimulation from a deep section is immensely exciting for Elixir. Although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties. Furthermore, on almost every other front the well has exceeded expectations – in terms of geology, engineering, economics and project management.”


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.

EXR:AU
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Alvopetro Announces February 2025 Sales Volumes

Alvopetro Announces February 2025 Sales Volumes

Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces February sales volumes of 2,285 boepd, including natural gas sales of 13.0 MMcfpd and associated natural gas liquids sales from condensate of 115 bopd, based on field estimates.

Natural gas, NGLs and crude oil sales:

Sales volumes in February were impacted by reduced demand for the final 7 days of February. Sales in March are expected to be consistent with January.

Corporate Presentation

Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .

Social   Media

Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

Abbreviations:

boepd

=    barrels of oil equivalent ("boe") per day

bopd

=   barrels of oil and/or natural gas liquids (condensate) per day

Mcf

=    thousand cubic feet

Mcfpd

=    thousand cubic feet per day

MMcfpd

=    million cubic feet per day

NGLs

=    natural gas liquids

BOE Disclosure . The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of   the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning future production and sales volumes and expected sales under the Company's long-term gas sales agreement.   Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material.   Forward   -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to,   expectations and assumptions concerning   forecasted demand for oil and natural gas,   the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations regarding Alvopetro's working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability,  environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations   .   The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF

SOURCE Alvopetro Energy Ltd.

Cision View original content: http://www.newswire.ca/en/releases/archive/March2025/05/c4751.html

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