EXR about to kick off second phase of flow test
Elixir Energy (ASX: EXR) is just about to kick off the second phase of its flow test at its QLD gas project.
Just last week, EXR finished the first phase of its flow test announcing a stabilised flow rate of up to 2.5 million standard cubic feet of gas. (See our note from Friday here)
That result on its own was enough to meet the commerciality threshold EXR had set going into its flow test of 2.5 million cubic feet of gas.
EXR’s first phase of this flow test was from the Lorelle Sandstone reservoir which was the conventional section of EXR’s well.
Today, EXR completed the stimulation work for its flow test across the unconventional sections of its well.
EXR confirmed in today’s announcement that the flow testing would “commence shortly” - so we should start to see results from these secretions over the next few days.
Hopefully EXR is able to add to what is an already strong flow rate across the well.
So far EXR has already hit our “base case” scenario, and may even achieve our “bull case” scenario depending on how well the next phase of the flow test goes.
Below are the expectations we had set going into this flow test:
- Bull case = >5mmcf per day flow rate
- Base case = 2-5mmcf per day flow rate
- Bear case = <2mmcf per day flow rate
What’s Next for EXR?
Here is where we think EXR sits relative to its flow test timeline:
