Elixir Energy Ltd (ASX:EXR) is on course to spud the Daydream-2 appraisal well within its Grandis Gas Project in Queensland’s Taroom Trough in the last week of October.
The gas exploration and development company last month contracted the services of global oil field services company SLB (previously known as Schlumberger (NYSE:SLB)) for the provision of the SLB 185 rig.
This rig is currently on another project in Queensland and should be released from operations by mid-October and subsequently, mobilised to the Daydream-2 location.
Confident of success
“We are very pleased to confirm that the drilling of Daydream-2 is on track for the second half of October - now only around two months away,” Elixir managing director Neil Young said.
“It is exciting to be a part of the growing drilling activity in the Taroom Trough - from not only juniors like Elixir - but also from the likes of the super-major and large Australian independent who are also in the play.
“We believe this location - in the success case - is very well placed to supply material volumes of gas to domestic and international markets in a very timely manner.”
Safety first
Elixir intends to drill Daydream-2 to a total depth of about 4,200 metres.
A new blow out preventer (BOP) capable of handling 10,000 psi well pressures has been procured to safely optimise drilling operations since over-pressure in the Taroom Trough is highly likely at this depth.
The new BOP has just been dispatched from the manufacturer and is expected to be installed on SLR 185 in early October.
Drilling of the Daydream-2 well will immediately follow the successful installation of the BOP and rig acceptance.
Current plan
To prepare for the arrival of the rig, the company has begun procuring long lead items such as casing and a well head.
It is also mobilising teams for the drilling of an on-site well by the end of this month, from which water will be used for drilling and stimulation activities.
A contractor for the construction of the well pad and access track upgrades will be selected imminently for work to begin next month.
As well, all ancillary services contractors will be signed up soon to support the drilling, logging and completion of Daydream-2.