Elixir Energy hits record-depth coal gas flow at Daydream-2 well in Queensland
Elixir Energy (ASX: EXR) has achieved the deepest flow of coal gas to the surface ever recorded in this country in latest testing on the Daydream-2 well at its 100%-owned Project Grandis in Queensland’s Taroom Trough region.
Daydream-2 has attracted significant attention as a potentially game-changing gas discovery after drilling encountered an unexpected sandstone reservoir at the bottom of a well initially drilled to examine the higher-up coal seam potential.
Elixir has reported positive conventional flows from the lower sandstone level in recent days and the company has now flowed gas to the surface from the uppermost stimulated zone in the well – a package of coal seams between depths of 3,786 metres and 3,678m.
Key objective
Managing director Neil Young said this successful first flow of gas from the deep coals in the Taroom Trough was one of the key objectives at Daydream-2.
Gas flowing to the surface is a key trigger to commence converting prospective resources into contingent resources and Elixir will now work with its independent resource certifiers to obtain an initial contingent resource from the deep coals.
Elixir has previously reported an estimate of 3,603 billion cubic feet in prospective resources contained in its ATP 2044 permit’s Permian coals.
‘Fantastic outcome’
“This is a fantastic outcome for Elixir and the overall Taroom Trough,” Mr Young added.
“It has long been recognised that the deep coals here contain many trillions of cubic feet of gas in place – and now we have demonstrated that some part of that can be flowed to the surface.”
“We consider this just the start of an incredible journey of bringing on the very large new sources of gas that Australia vitally needs.”
The process of conversion of all of the prospective resources will require more data from new wells which achieve a similar coal flow outcome in the broader Taroom Trough.
Elixir is now planning to flow test all six Permian zones together.