Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) is confident of increasing the gas bounty at Project Grandis in Queensland after being formal awarded a 100% working interest in ATP 2077 which has independently certified 2C resources of 173 billion cubic feet.
This would increase total Project Grandis 2C resources by 13% to 1,470 billion cubic feet.
The company was appointed as Preferred Tenderer for a new exploration area (PLR2023-1-7) in Queensland’s Taroom Trough adjacent to its existing ATP 2044 licence in June 2024 and this block, ATP 2077, has now been formally awarded by the Queensland Government.
This licence has an initial term of six years, has been awarded to Elixir on a 100% basis and does not contain any Government domestic market restrictions.
“A lot of valuable gas resources”
Elixir’s managing director Neil Young said: “Obtaining a new and material contingent resource booking from the award of ATP 2077 was the key strategic reason for our bidding for this acreage release.
"The excellent recent work done on ATP 2044 has been leveraged into the same Taroom Trough play part of ATP 2077 – giving rise to the acquisition of a lot of valuable gas resources at minimal cost.”
The licence has three geographically separate sub-blocks – Sub-block A, Sub-block B and Sub-block C.
Location map of ATP 2077.
Independent estimate
Based on work undertaken by Elixir in ATP 2044, the company sought an independently certified contingent resource estimate from international firm ERC Equipoise Pty Ltd (ERCE) for ATP 2077 Sub-block A, which is immediately proximate to ATP 2044 and contains similar Taroom Trough geology. It resulted in estimated 2C resources of 173 billion cubic feet.
The ERCE resource certification also shows 2C condensate of 1.8 MMbbls (Millions of Stock Tank Barrels) in ATP 2077 which increases total Project Grandis 2C condensate by 17% to 12.6 MMbbls.
The subclass of Contingent Resources (as defined under the PRMS) is 'Development Unclarified', as of August 16, 2024.
These contingent resources estimates are for the sandstones only within Sub-block A in the gas-bearing Permian section, and do not include the prospective coal resources, which are planned to be the subject of stimulation and production testing in ATP 2044.
Elixir’s technical team and ERCE independently analyzed drilling, logging and test data to make these estimates.
Additional data acquired by Daydream-2 included wireline logs (Gamma Ray, Resistivity, Neutron-Density, Sonic) and flow tests from 4,200 metres to 4,217 metres.
Specific analysis undertaken included seismic interpretation, core analysis, wireline petrophysics, chromatographic gas analysis, DFITs, production test analysis and gas sampling and all have been incorporated in the resource estimates.
Work on other sub-blocks
The company’s technical team is currently evaluating the prospective resources in Sub-blocks B and C of the licence.
Sub-block B also overlies the Taroom Trough, however, given the distance from Project Grandis it has been considered premature to book contingent resources on this area at this point in time.
Sub-block C lies outside the Taroom Trough and is adjacent to existing gas infrastructure such as the currently largely dormant Silver Springs gas storage asset. Work undertaken by Elixir’s technical team to date has identified some possible shallow drilling targets.
The key contingency or uncertainty for Project Grandis is demonstration of a commercial flow rate and the definition of a viable development plan.
Whilst the company has achieved a flow rate of 2.5 million cubic feet per day from the lower-most Lorelle Sandstone, the upper zones have not yet been tested.