Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) is gearing up for the next phase of the Daydream-2 program in around two weeks with a new coil tubing unit (CTU) for flow testing at the 100%-owned Grandis Project in Queensland’s Taroom Trough.
Prime contractor for this next phase of the Daydream-2 program, Condor Energy, has imported from New Zealand a CTU capable of operating at the high pressure and depths of the Taroom Trough for Elixir and fellow operators in the region.
This CTU will first be deployed at Daydream-2 in approximately two weeks to mill out the plug inserted above the Lorelle Sandstone, which flowed gas at a stabilised rate of 1.3 million standard cubic feet per day (MMscfd) prior to it being stimulated earlier in the year.
“Encouraging sign”
Elixir’s managing director Neil Young said: “We are naturally very pleased that the Daydream-2 program is scheduled to resume in a couple of weeks and come to its conclusion within a month or so after that.
“The current multi-operator program in the Taroom Trough gives rise to a degree of complexity on the operational management front – but is otherwise an enormously encouraging sign of the large investments being made into the vast potential of this very well-located area that can cheaply deliver to East Coast and International gas market shortfalls.”
Aim for optimal utilisation
Elixir is working closely with Condor and the neighbouring operator to coordinate the optimal utilisation of the CTU and other key equipment and personnel over the coming months, which may result in some changes in the timing of certain elements of the planned program that may be affected by unexpected geological and operational factors.
This next stage will be the perforation and stimulation of three sandstone and two coal zones in the Permian section. These will then be progressively cleaned up and flow tested for a period estimated to be a couple of weeks.
Six zones to be tested
It is planned that the upper most zone, a coal section, will be independently flow tested first with the aim of proving up contingent resources in the coals of the Taroom Trough for the first time.
Thereafter all six zones will be flow tested on a combined basis with the intent of exceeding a flow rate of 2.5 MMscfd.
This flow test will be from only 19% of the total gas-bearing zones of the Permian section and a higher flow rate could be extrapolated to arise from future more extensive perforations and stimulations.
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