Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has provided an update on its 100% owned Grandis and Nomgon projects in Queensland and Mongolia respectively.
Elixir managing director Neil Young said: “We are pleased that operations at both of our large gas projects in Queensland and Mongolia are on track to meet their core de-risking objectives.
“The Daydream-2 well at Grandis will be the scene of intense activity through to around the middle of the year as we now move into the key stimulation and flow testing phases. Given this, we are very pleased to note that the current activities by a range of operators in the Taroom Trough is drawing more and more gas industry attention.”
Grandis Project, Queensland
At the Grandis Project, in the Taroom Trough of the Bowen Basin, Queensland, a coiled tubing unit is now cleaning out the Daydream-2 cased wellbore.
This cleanout is a pre-cursor to the diagnostic formation integrity test (DFIT) program. The results of this DFIT program will be used to optimise the subsequent stimulation and flow testing phases of Daydream-2, which is expected to run from April through to around June.
Elixir confirms that the detailed design of the stimulation and testing program has been finalised, with a total of six zones to be stimulated. These zones cover around 47 metres of pay, out a total of 245 metres (being the final sandstone net pay of 180 metres and coals of 65 metres) recorded in the Daydream 2 wellbore (19% of the total net interval). The sandstone net pay has been revised upwards from 154 metres following an external independent expert review.
The zones selected represent a cross-section of permeable sands, tight sands and coals. The total zones being tested in Daydream-2 are guided by the key principle of maximising useful data acquisition from an appraisal well, which can inform the design of future development wells.
In such future development wells, much greater pay would likely be stimulated and flowed. The results from the stimulation program in Daydream-2 will guide the targeting of further zones in future wells and can be extrapolated over the entire gas prone intervals.
The stimulation program, to be conducted by global leading contractor Halliburton (NYSE:HAL), will be followed by a series of flow tests in May and June.
Coiled tubing unit at Daydream-2
Nomgon Project, Mongolia
In conjunction with the intense program in Queensland, Elixir is also continuing operations at the Nomgon Pilot Project in Mongolia.
The current key objective here is to continue to depressurise the gas-bearing coal reservoir through the ongoing pumping of water from it.
Recently one of the pilot wells, Nomgon-10, was worked over, with a larger downhole pump installed, and increased water rates have already been observed.
Elixir’s engineers are actively managing the pilot plant to maximise water production and accelerate the time to reach desorption pressure. Analysis of data from the Nomgon field indicates that steady progress is being made in reducing the reservoir pressure required to reach the gas desorption pressure.
The company is currently considering adding one or two more pilot wells at the project to increase the pace of the depressurisation process.