Elixir Energy Ltd (ASX:EXR) is on track to reach total depth at the Daydream-2 appraisal well as drilling continues at its 100%-owned Grandis Gas Project (ATP 2044) in the Taroom Trough of the Bowen Basin, Queensland.
EXR has so far drilled the intermediate section of the Daydream-2 appraisal well to a depth of 2,915 metres and is presently undertaking casing and cementing operations.
Recent developments include the acquisition of wireline logs for Origin Energy (at its sole cost), under the terms of a newly established Information Sharing Agreement.
In addition to the incremental costs of this logging program, Origin is now due to pay $1 million to Elixir under this agreement.
The Elixir/Origin relationship
Elixir executed an Information Sharing Agreement with Origin Energy ahead of the upcoming spud of its Daydream-2 well.
Origin is in the process of being awarded a greenhouse gas (GHG) licence which overlaps Elixir’s Grandis Gas Project, or ATP 2044. This licence facilitates Origin’s plans to investigate carbon capture and storage (CCS) in this area.
“The drilling of Daydream-2 continues to go very well and we are on track to meet our estimate of around one month to get to total depth,” Elixir’s managing director Neil Young said.
“This week we successfully obtained logs for Origin Energy for its carbon capture and storage project in the region – demonstrating the emerging 'Energy Super Basin' that we consider the Taroom Trough will become.”