Impressive Initial Flow Test Results

Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an operations update on its 100% owned Grandis project located in Queensland, adjacent to the Wallumbilla gas hub.

HIGHLIGHTS

• Highly encouraging initial flow test in the Lorelle Sandstone
• Stabilised flow rate of 1.3 million cubic feet per day achieved without stimulation
• Stimulation and multiple zone flow testing to follow imminently

Following a recent successful suite of Diagnostic Formation Integrity Tests (DFITs) conducted at Daydream-2, the Company decided to test the free-flowing capacity of the Lorelle Sandstone between 4,200 and 4,217 metres (the zone which flowed into the well bore late last year).

The test has been highly successful – with a maximum rate of 2.3 Million Standard Cubic Feet Per Day (MMSCFPD) and stabilised flow rate of 1.3 MMSCFPD (through a 20/64 choke). Elixir understands this is the deepest unstimulated flow of gas in onshore Australia East of the Perth Basin.

Flare (estimated to be 15 metres in height) from the Lorelle Sandstone Test at Daydream-2 during the 1st flow period

Some short videos of the flare are available on YouTube: https://youtu.be/kGUUhsLojNE

The flow test was conducted following encouraging results from the DFIT over the permeable Lorelle Sandstone (the other DFITs conducted went to plan and provided useful data for the final design of the stimulation program). The test was conducted over two distinct flow periods. The well is now shut in for longer term pressure build-up before stimulation begins later in the month.

The testing work was not impeded by heavy recent rain in the region, which reflects its favourable ease of access and well constructed civil works. The Daydream-2 lease could well be utilized again for another appraisal well – Daydream-3 – for which preliminary planning has commenced (but whose final design will ultimately be informed – inter alia – by the imminent outcomes from Daydream-2).

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