EXR contingent resource now at 1.7TCF

Elixir Energy (ASX: EXR) just increased its contingent resource for its QLD gas project.

EXR booked a maiden resource for the deeper dry coals adding 245 bcf of gas to its overall project wide contingent resource number.

After today’s news, the total project wide 2C contingent resource sits at 1.7 TCF (Trillion Cubic Feet) of gas.

(the prospective resource across the project is even bigger at a 2U 4.3 TCF)

And that resource is from just two of EXR’s blocks at its project in QLD, the remainder of the blocks haven’t been included in the company’s resource estimate yet:

The results today, came after EXR drilled and tested its Daydream-2 well across 2023 and 2024.

The deep dry coals were key target areas for the drill program so its good to see EXR booking a resource estimate across those primary target areas.

To us it's a good marker for the progress EXR is making with the project.

What’s next for EXR?

At this stage, it looks like EXR’s focus is on putting together a plan to further develop its QLD gas project.

EXR previously said that it would look to apply for a retention license for the project and have already mentioned plans for a Daydream-3 well.

At this stage it's too early for us to speculate on what Daydream-3 would look like and the timing of it, and it will be interesting to see how EXR chooses to progress the project.

EXR’s MD Neil Young has mentioned potential partnership discussions several times in the past so it will be interesting to see what comes from those discussions.

EXR still maintains a 100% working interest in the project - which means it could look to farm down a portion of it at some point in the future.

Remember Shell and Santos have ground next door to EXR.

We think whatever comes from those discussions will ultimately form the basis for the size/scale of the next program.