HIGHLIGHTS
• Lorelle Sandstone flows gas at stabilized flow rates of 2.1 and 2.5 MMSCFPD
• Flow rate of Lorelle zone alone approaching the modelled economic hurdle
• Five stage stimulation program now underway
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on the Daydream-2
program in its 100%-owned Grandis Project in Queensland’s Taroom Trough.
The flow test of the Lorelle Sandstone post stimulation was completed yesterday. On-site operations
have now moved to the stimulation of the 5 upper zones.
The Lorelle Sandstone was flow tested from 4,200 meters to 4,217 metres directly through the 4 1/2”
casing without a completion. The well was tested at multiple rates and multiple choke sizes. The well
flowed gas at a maximum rate of 3.5 Million Standard Cubic Feet Per Day (MMSCFPD) and on multiple
occasions stabilized rates were observed between 2.1 and 2.5 MMSCPFD throughout the flow period
(see Appendix 1 for full disclosures required under Listing Rule 5.30).
As the test progressed, it has become clear that stimulation fluid in the wellbore was accumulating
and suppressing the stabilized rate. Running a completion string in the hole in any future production
test would resolve this issue and significantly improve the gas production rate. Engineering
calculations suggest that with the appropriate completion string in the hole, the well would flow at a
stable rate of 3.0 MMSCFPD. Towards the end of the testing, minor amounts of condensate were
recovered.
The unstimulated rate achieved in April 2024 from the same zone was 1.3 MMSCFPD. The results
of the test show that the stimulation was successful and caused a material increase in gas flow.
As announced on 29 April 2024, Elixir’s modelling indicates an initial flow rate of 2.5 MMSCFPD is
considered economic in the market price and cost scenarios relevant for the Grandis Project.
The stimulation operation of this phase of the Daydream-2 program is now underway. Elixir’s plan is
to plug, perforate and stimulate 5 stages consecutively, and upon completion of this, in just over 1
week’s time, commence further flow testing. Elixir plans to report to the market next when the
stimulation operation is complete.
Elixir’s Managing Director, Mr Neil Young, said: “Achieving a potentially commercial flow-rate from
only a single zone in Daydream-2 is a massive out-performance of all our expectations at the start of
the well. There is a lot more news to come in the next few weeks and our vision that the Taroom
Trough may be a major new supplier of gas to the desperately short Australian gas market – as well
as the under-utilised LNG plants in Queensland – is coming close to fruition.”
