What Makes Elixir Energy's Daydream-2 Well in Queensland a Groundbreaking Discovery?
Elixir Energy Limited
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What Makes Elixir Energy's Daydream-2 Well in Queensland a Groundbreaking Discovery?

Elixir Energy's Daydream-2 Well Poised to Transform Queensland's Energy Landscape

Adelaide, January 18, 2024 – Elixir Energy Limited's ("Elixir" or the "Company") latest update on its Daydream-2 appraisal well marks a potential turning point in Queensland's gas exploration landscape. Located in the Taroom Trough of the Bowen Basin, the Daydream-2 well, part of the wholly-owned Grandis Gas Project (ATP 2044), has reached depths previously uncharted in the region in over a decade, unveiling promising gas prospects.

Groundbreaking Discovery at Unprecedented Depths

As Elixir's technical team and various service providers pore over the data, the Daydream-2 well, drilled to a total depth of 4,300 metres, has revealed porous and permeable sandstone reservoirs at 4,200 metres. This discovery, coupled with the well producing gas to the surface, underscores the significance of the find not only for the Grandis Project but also for the broader Taroom Trough area.

Exceptional Reservoir Properties

In an exciting turn during the drilling in December 2023, the well intersected a sandstone interval with properties surpassing initial projections. Notably, a logged porosity exceeding 10% at this depth is a rare occurrence onshore, akin to certain sections of the Perth Basin's Permian layer. The petrophysical log analysis and the recovery of gas confirm the presence of three gas-saturated sandstone reservoirs, extending over approximately 12 metres in thickness.

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Petrophysical Insights

The logs from Daydream-2 offer critical insights:

Channelized Fluvial Deposits: The sands, characterized by sharp bases and fining upwards, indicate a fluvial channel depositional environment.
Robust Resistivity Profile: Marked between the shallowest and deepest readings, this profile is a key indicator of permeable rock, especially pronounced in Sand 1.
Neutron and Density Log Crossover: This aspect typically signifies gas-producing reservoir sandstone in the Cooper and Bowen Basins.

The stratigraphic correlations draw parallels with the Lower Lorelle Sandstone from the Dunk-1 well, drilled about a decade ago by BG Group in PCA 305 (Shell – 100%), located 26 kilometres away.

Mapping the Unknown: The Road Ahead

While the exact extent of these sandstone reservoirs remains to be fully explored, initial signs point to a substantial and high-quality reservoir, as evidenced by the Dunk-1 correlations. Elixir now embarks on a mission to ascertain the extent and thickness of these sandstones, a key component of their forward strategy.

Novel Stimulation and Testing Regime

Elixir's innovative stimulation testing regime is set to commence soon, starting with the rigging of a coiled tubing unit on location. This phase includes the initial diagnostic fracture injection test (DFIT) stage, a crucial step in assessing in-situ earth stress, formation permeability, and pore pressure. These parameters are vital for stimulation design and reservoir engineering in low permeability formations. Elixir plans to conduct DFITs across five separate zones, including the newly identified permeable zone.

DFIT: A Comprehensive Approach

This extensive DFIT program, spanning approximately 4-8 weeks, is somewhat of a novelty in Australia. It underwrites the Research and Development aspect of the program, aiming for an optimal stimulation design to efficiently exploit the discovered gas resources. Key long-lead items for the stimulation program, including various sized proppants, have been sourced from manufacturers in China.

Next Steps and Future Prospects

With the imminent arrival of equipment for the initial stimulation and testing phase, Elixir's Managing Director, Mr Neil Young, expresses optimism about the project's potential. "Our technical team's analysis to date indicates a potential new play that could be extensive," he states. The upcoming comprehensive DFIT program marks the beginning of a series of tests aimed at validating this potential.

Elixir's Strategic Position

Elixir Energy, headquartered at Level 3, 60 Hindmarsh Square, Adelaide SA 5000, Australia, finds itself at a pivotal juncture in Queensland's gas exploration narrative. The Daydream-2 well could herald a new era of energy discovery and development in the region, potentially reshaping the energy dynamics not only of Queensland but also of Australia as a whole.

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