Elixir Energy Ltd (ASX:EXR) has completed a successful logging program at the Daydream-2 appraisal well in its 100%-owned Grandis Gas Project in the Taroom Trough of the Bowen Basin, Queensland.
Having finalised the program in the last few days, the company’s preliminary interpretation of the results (using standard Australian onshore cut-offs) has revealed 78 metres of net gas pay from the Kianga Formation and a further 76 metres from the Back Creek Group for a total of 154 metres.
Exceeding expectations
“Recording 154 metres of net pay at Daydream-2 is a great result – exceeding our pre-drill expectations – and in due course our fully funded plans aim to add the coal zones to this net pay category,” Elixir Energy managing director Neil Young.
“Encountering a permeable 'conventional' sandstone reservoir at depths of 4,200 metres has been a very exciting recent and unexpected development and this zone will be a key focus for next year’s stimulation and flow testing operations.”
Gaseous coal zones were also logged by Elixir, totalling 65 metres. The company will target these thermally mature coals for stimulation in the new year, potentially adding to total net pay and production potential.
In addition, EXR intersected an unexpected permeable sandstone zone at about 4,200 metres of depth, which flowed gas into the wellbore and flared at surface.
Elixir will include this new has zone in stimulation and flow testing plans for next year.
The company says a number of laboratory analyses of various drill cuttings from the well are underway, the results from which will help inform, optimise and de-risk the planning for the upcoming next stages of the program for the well.