Why is the 154 meters of net gas pay considered a significant achievement for Elixir Energy?
Elixir Energy Limited
14 4

Why is the 154 meters of net gas pay considered a significant achievement for Elixir Energy?

Elixir Energy Limited, a prominent player in the energy sector, is making waves with its latest update on the Daydream-2 appraisal well within the Grandis Gas Project. Located in the Taroom Trough of the Bowen Basin in Queensland, Australia, the project has captured the attention of industry insiders and investors alike. The company recently released details regarding the logging program at Daydream-2, revealing an impressive 154 meters of net gas pay. This announcement comes as a beacon of optimism for Elixir Energy and the broader natural gas market.

Completion of Logging Program

The Daydream-2 appraisal well has been under close scrutiny in recent days, with the logging program now finalized. Currently, the production liner is being deployed to case off the well to its total depth, marking another milestone in the project's development. Notably, the well costs have managed to stay under budget, further enhancing the economic viability of the endeavor.

Story Continues.. after this ad because we need some dollarydoos

Interpreting the Gas Pay

Elixir Energy has provided a preliminary interpretation of net gas pay from log analysis, adhering to standard Australian onshore cut-offs. The results indicate substantial potential in the following formations:

Kianga Formation: A notable 78 meters of net gas pay.
Back Creek Group: An impressive 76 meters of net gas pay.

This adds up to a remarkable total of 154 meters of net gas pay, promising an abundance of valuable resources within reach. Additionally, the exploration also uncovered gaseous coal zones, totaling 65 meters, within the primary objective interval. These thermally mature coals are slated for stimulation and flow testing in the New Year, a development that could significantly augment the well's net pay and production potential.

Unexpected Permeable Sandstone Zone

In a surprise twist of fate, on December 7, 2023, Daydream-2 intersected an unexpected permeable sandstone zone at approximately 4,200 meters. This unexpected find resulted in a gas flare at the surface, sparking considerable excitement within the company. Elixir Energy is currently analyzing this zone, and the data gathered will play a crucial role in shaping the stimulation and flow testing plans scheduled for early next year.

Pressure and Laboratory Analyses

Estimates of over-pressure within the Permian gas-bearing zones at Daydream-2 remain somewhat subjective at this stage. These estimates are primarily based on the drilling mud required to control the gas influx encountered in the lower zone. However, they are currently considered to be significant, in the region of 0. 69 psi/foot. This data, though preliminary, underlines the potential of the reservoir.

Furthermore, several laboratory analyses of various drill cuttings from the well are currently underway. These analyses are expected to yield critical insights that will help optimize and de-risk the planning for the upcoming stages of the program. As the results of these analyses emerge, Elixir Energy anticipates a more detailed roadmap for the project's progression.

Managing Director's Perspective

Neil Young, the Managing Director of Elixir Energy, expressed his satisfaction with the recent developments. He stated, "Recording 154 meters of net pay at Daydream-2 is a great result – exceeding our pre-drill expectations. In due course, our fully funded plans aim to add the coal zones to this net pay category. Encountering a permeable 'conventional' sandstone reservoir at depths of 4,200 meters has been a very exciting recent and unexpected development, and this zone will be a key focus for next year's stimulation and flow testing operations. "

Elixir Energy Limited's Daydream-2 appraisal well is rapidly emerging as a standout success within the Grandis Gas Project. With 154 meters of net gas pay, gaseous coal zones, and the unexpected discovery of a permeable sandstone zone, the project's potential is gaining momentum.

Investors and industry watchers will be keenly awaiting the results of the upcoming stimulation and flow testing operations, as they could substantially elevate the well's production potential. As Elixir Energy continues to unlock the rich natural gas resources within the Bowen Basin, it positions itself as a key player in the energy sector with a promising future ahead.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 142 Share