Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Elixir Energy lifts Grandis Gas Project 2C resource by 328% to 1,297 billion cubic feet

Published 27/05/2024, 12:46 pm
© Reuters.  Elixir Energy lifts Grandis Gas Project 2C resource by 328% to 1,297 billion cubic feet
AXEJ
-

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.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.