What Did Elixir Energy Discover in Queensland?
Elixir Energy Limited
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What Did Elixir Energy Discover in Queensland?

Unveiling the Potential of Deep Gas Reserves: Elixir Energy's Daydream-2 Breakthrough

Elixir Energy Limited has made a significant stride in the exploration of deep gas reserves with its Daydream-2 appraisal well in the Grandis Gas Project, revealing promising laboratory results that could redefine gas extraction methods in Queensland. The discovery of clay rims preserving porosity in deep sands at unprecedented depths opens up new possibilities for gas recovery, potentially leading to more efficient and cost-effective extraction processes.

A Deep Dive into Daydream-2's Laboratory Findings: Groundbreaking Discovery

On 18 January 2024, Elixir Energy announced an unexpected find in the Daydream-2 well, part of its wholly owned Grandis Gas Project situated in the Taroom Trough of the Bowen Basin, Queensland. Laboratory analyses have now shed light on the presence of clay rims around quartz grains in sand intervals at depths between 4,200 and 4,220 metres. This geological feature has been instrumental in maintaining high porosity levels without the need for stimulation, a process often required in such deep sandstones but which increases costs and reduces well recoveries.

Significance of Clay Rims

The clay rims observed are akin to those found in the productive deep Permian sections of the Perth Basin, marking the first time such features have been identified in Queensland at these depths. This discovery is pivotal for the Grandis Gas Project, as it suggests the presence of primary porosities preserved above 12% beyond the previously considered depth limit of 4,200 metres.

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The phenomenon is believed to result from the sandstones' position along a transient marine/shoreline border during the Permian era, highlighting a unique geological setting conducive to such preservation.

Comparative Analysis and Implications

A photomicrograph comparison between Daydream-2 and Senecio-3, a well in the Perth Basin, illustrates similar clay rim structures, despite the deeper and more pressurized conditions at Daydream-2. With reservoir pressures at Daydream-2 recorded at 9,400 psia—80% higher than at Senecio-3—expectations for gas recovery per well are significantly elevated, promising more favorable economic outcomes for the project.

Future Exploration and Testing

Elixir Energy is preparing for Diagnostic Fracture Injection Testing (DFIT) and stimulation simulations to further evaluate the permeable zone's extent and characteristics. These efforts aim to de-risk and better understand the gas-charged, over-pressurized tight sandstone and coal formations across the Taroom Trough, setting the stage for a broader exploration and development initiative.

Expert Commentary

Neil Young, Elixir’s Managing Director, expressed optimism about the findings, highlighting the unexpected permeable zone's role in potentially unlocking new and highly productive gas plays. He emphasized that these results not only reaffirm the extensive unconventional reservoirs within the Taroom Trough but also introduce a new dimension to the project's development economics, thanks to the confirmed material over-pressure.

Elixir Energy's preliminary laboratory results from the Daydream-2 well mark a pivotal moment in the exploration and development of deep gas reserves in Queensland. The identification of clay rims preserving porosity at such depths could revolutionize the gas extraction landscape, offering a glimpse into the untapped potential lying beneath the Taroom Trough.

As Elixir Energy proceeds with further testing and exploration, the industry watches closely, anticipating the broader implications of this discovery for gas recovery technologies and strategies worldwide.

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