Can Elixir Energy Overcome Flow Challenges at Daydream-2?

Elixir Energy Limited (ASX: EXR) has released a significant operational update regarding its 100% owned Daydream-2 well, located in Project Grandis within Queensland’s Taroom Trough. The Company’s latest production logging tool (PLT) run has shed light on the well's performance, revealing critical insights into the contributions of the stimulated zones.

The PLT, run over the majority of the key zones, confirmed two important outcomes:

The upper zones are actively contributing to the overall flow, validating earlier efforts to stimulate these areas.
The lower zone, while dominant, faces flow challenges due to fluid and some proppant accumulating in the wellbore, which is hindering the optimal flow rate.

Preparing for a Clean-Out: Coil Tubing Unit to Return

To address the suboptimal flow from the lower zones, Elixir Energy plans to bring back the Coil Tubing Unit (CTU), currently engaged with a neighboring operator, to the Daydream-2 well site. The CTU will perform a nitrogen lift and clean-out operation, a critical step to clear the impediments and enhance the well’s performance. This intervention is expected to take place before the end of the month, contingent on the progress of operations with the adjacent operator.

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The flow testing phase will resume and be finalized following the clean-out work, marking a key milestone in Daydream-2’s operational timeline.

Managing Director’s Insight: Reflecting on Regional Activity

Elixir’s Managing Director, Neil Young, expressed satisfaction with the confirmation of flows from the upper zones, despite some challenges in the lower zones. “It is very pleasing to have the PLT confirm flows from the upper stimulated zones in Daydream-2,” Young commented. “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. ”

Regional Importance: The Growing Role of the Taroom Trough

The operational activities in the Taroom Trough underscore the region’s growing significance as a key player in Australia’s gas supply landscape. As more operators intensify their efforts, the area is becoming a hotspot for energy development, with Elixir Energy positioned at the forefront of these efforts.

Elixir Energy’s continued advancements in the Daydream-2 well highlight the company’s proactive approach to overcoming operational hurdles and optimizing its assets. The company’s strategic maneuvers, including timely interventions such as the forthcoming CTU clean-out, are critical to maintaining momentum in this highly competitive and increasingly vital region.

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