Elixir Energy Ltd (ASX:EXR) has spudded its Daydream-2 appraisal well at the Grandis Gas Project, situated in the Taroom Trough of the Bowen Basin in Queensland.
The operation, using SLB's (formerly Schlumberger (NYSE:SLB)) SLR 185 rig, is expected to take about one month to reach the projected depth of 4,200 metres.
Key highlights of this development include the formal acceptance and certification of the SLR 185 rig and a new 10,000 psi blow-out preventer (BOP).
Moving forward, Elixir Energy has contracted and mobilised the necessary third-party services for this phase of drilling.
BOP and Sub-base of SLR 185 Rig.
“Key milestone”
Elixir managing director Neil Young said: “The spudding of Daydream-2 is just the start of a very exciting period for Elixir’s shareholders.
“We should hit our target depth a few weeks before Christmas and then head into the New Year with the major stimulation and flow testing program that the well will undergo.
“Success will mark a key milestone in opening up a very large new gas play in Queensland that is exceptionally well located to supply both domestic and international gas markets.”
Seismic image showing Daydream-2 and other nearby wells.
Forward plan
Daydream-2 is an appraisal well situated around five kilometres from the Daydream-1 discovery well drilled by BG Group (now Shell (LON:RDSa)) in 2011, which encountered a thick gas-bearing column in the Permian section and flowed gas to the surface.
After the well has reached its target depth at the base of this section, it will be extensively logged.
It will then be cased and suspended pending a major stimulation and flow testing program due to kick off early in the New Year.
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