EXR adds to QLD gas project - contingent resource now ~14% higher
Our energy Investment Elixir Energy (ASX: EXR) just increased its land position at its QLD gas project.
EXR added ATP 2077 to the west of its existing ground and has now increased the 2C resource of its project by 173 billion cubic feet - an increase by ~14% on the projects overall resource.
Across its projects EXR now has a total contingent resource of 1.47 trillion cubic feet of gas.
The new ground sits immediately to the west of the company’s Daydream-2 well where EXR is currently running a flow test.
Last Friday EXR put out initial flow test results from the first of the reservoirs in the well delivering a 2.5 million standard cubic feet of gas flow rate.
(See our note from Friday here)
That result sits right on the commerciality threshold of 2.5mmcf per day that EXR had been mentioning going into the flow test which is a positive sign, especially considering EXR has several other zones of its well to stimulate and flow test.
With the project now having a ~14% bigger contingent resource we are looking forward to the next phase of results from the flow test.
What’s Next for EXR?
Here is where we think EXR sits relative to its flow test timeline:
