Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has completed desorption analysis on coal cuttings from the Daydream-2 well of the Grandis Gas Project in Queensland, Australia, measuring much higher gas content than expected.
Coal samples from drill cuttings in Daydream-2 were used to analyse the gas content of the hydrocarbons using traditional coal bed methane methods.
The scrutiny revealed a new prospective source of gas, having been adsorbed into the coals, averaging about 23 cubic metres per tonne in their raw state, which translates to 34 cubic metres per tonne minus dry ash, according to EXR.
Using these measurements, Elixir has re-assessed its prospective resource to include the adsorbed gas element, increasing the total un-risked prospective resources (2U) in ATP 2044 to 3.6 trillion cubic feet of gas.
Substantial prospective resource increase
“We are naturally pleased to announce this very substantial increase in our already very large prospective resources in the coals in ATP 2044,” Elixir Energy managing director Neil Young said.
“To our knowledge, conducting coal content analysis on deep formations in this fashion was a first in Australia and, as such, is a tribute to the innovative mindset of our internal team and supportive service providers.
“In only a few months, we aim to commence converting these resources into discovered contingent resources.”
EXR achieved an increase of 2.3 trillion cubic feet of gas with this upgrade, more than doubling the prospective resource at Grandis.
Next on the list at Grandis is a wellbore cleanout for Daydream-2, which Elixir expects to complete within the next two weeks with Diagnostic Fracture Integrity Tests (DFITs) to begin in March.
From there, stimulation and flow testing will follow in the second quarter of this year, eventually enabling gas flow and the conversion of prospective resource to contingent resources.