How Did Elixir Energy Identify the New Gas Resource in the Bowen Basin?

$EXR How Did Elixir Energy Identify the New Gas Resource in the Bowen Basin?

Elixir Energy's Groundbreaking Discovery: A New Horizon in Coalbed Methane

Elixir Energy Limited has announced a remarkable update on its Daydream-2 appraisal well, part of the Grandis Gas Project in Queensland's Bowen Basin. Through innovative laboratory analysis, Elixir has identified a significant increase in prospective resources, revealing a new gas resource adsorbed to coals. This discovery not only surpasses previous expectations but also positions the Grandis Gas Project as a forefront player in the unconventional gas sector.

Transformative Results from Daydream-2

Innovative Analysis: Leveraging advanced coal desorption techniques, Elixir, with the expertise of ALS, has identified substantial gas contents adsorbed to coal samples from the Daydream-2 well, marking a pioneering achievement in Australia.

Significant Resource Increase: The assessment has led to a dramatic elevation in prospective resources within ATP 2044, now estimated to encompass both adsorbed and fractured coal components, totaling 3.6 trillion cubic feet (Tcf) ... in the mid estimate.

Strategic Implications: This discovery not only boosts the project's potential but also enhances the prospectivity of the Grandis area, which shows exceptional gas saturation and direct conduits to sandstone reservoirs.

The Path Forward: From Prospective to Contingent Resources

Elixir is set to embark on an ambitious program aimed at converting these newly identified prospective resources into contingent resources. The upcoming stimulation and testing program, commencing in mid-April 2024, will target both the coal and sandstone formations identified in Daydream-2.

Key Milestones Ahead:

Wellbore Cleanout and Testing: Immediate plans include a wellbore cleanout of Daydream-2 and Diagnostic Fracture Integrity Tests (DFITs) scheduled for March, followed by stimulation and flow testing in Q2 2024.

Contingent Resource Conversion: Success in flowing gas from these tests will initiate the conversion of the significant prospective resources into contingent resources, with a re-assessment of sandstone resources also anticipated.

Environmental and Commercial Advantage

The preliminary gas analysis from the Daydream-2 samples has confirmed an expected low CO2 content of around 1%, a level that negates the need for processing before sales into pipelines, thereby offering both environmental and commercial benefits.

A Pioneering Effort Recognized

Elixir's Managing Director, Mr. Neil Young, highlighted the innovative approach taken by the company's internal team and its service providers. This strategic and pioneering effort not only underscores Elixir's commitment to unlocking unconventional gas resources but also sets a new benchmark for the industry in Australia.

Elixir Energy's significant discovery at the Daydream-2 well represents a major leap forward in the exploration and development of coalbed methane resources. With a substantial increase in prospective resources and a strategic plan in place for conversion to contingent resources, Elixir is poised to make a significant impact on Australia's energy landscape, driven by innovation, environmental stewardship, and a forward-looking approach to energy exploration.

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