Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has delivered a material increase in the contingent resources booking for its 100%-owned Grandis Gas Project (ATP 2044) in the Taroom Trough in Queensland’s Bowen Basin.
Independent expert ERC Equipoise has certified a significant increase in the 2C contingent resource at Grandis by 328% to 1,297 billion cubic feet, following drilling results at the project’s Daydream-2 well.
These contingent resource estimates are for the sandstones only in the gas-bearing Permian section and do not include the prospective coal resources, which will be the subject of stimulation and production testing in the coming months.
"Naturally delighted"
Elixir managing director Neil Young said: “We are naturally delighted with the ongoing material build-up of the very significant contingent resources in our exceptionally well-located Project Grandis.
"As our appraisal program resumes in the next month or so, the success case should deliver yet more substantial increases.”
This upgrade in contingent resources is largely due to:
- The lowering of the Lowest Known Gas (LKG) from Daydream-1 to Daydream-2 as a result of the successful Lorelle sandstone testing; and
- The overall improved sandstone reservoir development and resulting increased net to gross from Daydream-1 to Daydream-2.
Elixir’s technical team and ERCE analysed drilling, logging and test data to make these estimates. Specific analysis including seismic interpretation, core analysis, wireline petrophysics, chromatographic gas analysis, DFITs, production test analysis and gas sampling have all been incorporated in the resources estimates.
The key contingency for Project Grandis is the flow rate. Whilst the company has achieved a flow rate of 1.3 million cubic feet per day from the lower-most Lorelle Sandstone, the upper zones have not yet been tested.
Final results, post stimulation and flow testing in the coming months will feed into another independent certification.
Appraisal program to continue
The Daydream-2 appraisal program is expected to resume in the next month or so. Elixir expects updates on more specific time-frames to follow shortly, as current negotiations with various subcontractors are finalised.