Elixir Energy Ltd (ASX:EXR) is set to spud the Daydream-2 appraisal well next week, with Shell (LON:RDSa) currently drilling in a neighbouring tenement.
Drilling contractor SLB (previously known as Schlumberger (NYSE:SLB)) advised EXR that the contracted rig SLR 185 has been released by its current operator.
The drilling unit and camp are now mobilising to the Daydream-2 well site, which is located in EXR’s 100% owned Grandis Gas Project (ATP 2044) in Queensland’s Taroom Trough.
The Taroom Trough is part of the larger QLD Bowen Basin and EXR’s acreage is close to the Wallumbilla Hub natural gas terminal (35km), a storage and distribution hub for natural gas in North Queensland.
Notably, ten years ago Shell drilled the Daydream-1 well, just over the border of EXR’s licence area.
That well flowed at an instantaneous rate of 3.5 MMcfpd from an interval covering one-tenth of the gross prospective reservoir section.
Shell is currently drilling in a tenement to the immediate west of EXR’s ATP 2044 (https://geoscience.data.qld.gov.au/data/borehole/bh082431).
Daydream 2 to spud next week
The Daydream-2 appraisal well will spud early next week following acceptance testing.
“With the formal release of SLR 185 to Elixir the spud of Daydream-2 is now only a few days away,” Elixir’s managing director, Neil Young, said.
“Two large rigs will then be drilling contemporaneously to further open up the Taroom Trough — a real sign of its potential importance for domestic and international markets.”
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