AUSTRALIA — Elixir Energy Limited has announced positive results from its testing program at the Daydream-2 well in Project Grandis, located in Queensland’s Taroom Trough.

The company has successfully concluded its testing operations and plans to retain the well for future gas production.

The Daydream-2 well demonstrated gas flows from five out of six stimulated zones, including two separate deep coal zones.

This marks a significant milestone for Elixir, as it represents the first successful flow from deep coal seams in the area.

During the final phase of testing, the well achieved a maximum flow rate of 2.6 million standard cubic feet per day (MMSCFD) and a stabilised rate of 1.0 MMSCFD prior to shut-in.

While the stabilised rate was lower than previously measured, Elixir attributes this to condensate or water banking issues, which are common in early-stage tight gas plays and can be addressed in future operations.

The success of the Daydream-2 appraisal program has led to significant increases in Elixir’s resource estimates.

The company reported a 328 per cent increase in 2C contingent resources to 1.47 trillion cubic feet and a 180 per cent increase in 2U prospective resources to 3.6 trillion cubic feet.

Elixir’s Managing Director, Neil Young, expressed enthusiasm about the results, stating: “The Daydream-2 appraisal program has massively exceeded our expectations of more than two years ago when we acquired Project Grandis.”

He emphasised the importance of these new gas resources for Gladstone, Queensland, and Australia.

With the completion of the Daydream-2 testing program, Elixir has met all licence commitments for ATP 2044 and plans to apply for a retention lease, known as a Potential Commercial Area (PCA) in Queensland.

This would provide the company with up to 15 years of tenure.

Looking ahead, Elixir is already planning the Daydream-3 appraisal well to further de-risk the significant gas resources established in the Grandis Project.

The company anticipates accelerated discussions with potential partners as the global oil and gas industry takes notice of the opportunities in the Taroom Trough.

The successful results from Daydream-2, combined with the application of novel extraction techniques, have attracted Commonwealth Government research and development fiscal support.

This positions Elixir Energy at the forefront of developing new gas resources in Australia’s energy landscape.