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EXR: Daydream-2 Progress Update


Published 16-NOV-2023 15:00 P.M.


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Our energy investment Elixir Energy (ASX: EXR), has put out a progress report on their QLD gas project, Daydream-2.

The progress update noted the successful drilling up to 856 metres which is the top-hole section of the total ~4,200 metres drill well. The report also highlighted that a Cultural Heritage & Management Agreement was signed on country, providing a framework for managing “virtually all heritage matters on the permit ATP 2044.”

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What is EXR drilling and the goal?

EXR’s Daydream-2 is an appraisal well, targeting a ~395 billion cubic feet contingent resource.

EXR is drilling an appraisal well which means the company is targeting an already discovered hydrocarbon system to try and book a maiden reserve number.

A reserve is typically the last step before a discovery can be commercialised.

EXR’s project sits close to a well that Shell is currently drilling and so we think there is a good chance the oil and gas major is watching what EXR is doing.

Screenshot 2023-11-16 at 3.23.28 pm

EXR’s appraisal well will be aiming to:

  • Prove commercially viable flow rates
  • Increase EXR’s already large 395 bcf contingent resource.
  • Book the project’s first gas reserves (converting contingent resources into reserves).

EXR recently put out a video which tells the full story pretty well, check out that video below:

Screenshot 2023-11-16 at 3.24.24 pm


What’s Next for EXR?

QLD gas project 🔄

  • Drilling updates along the way (i.e. reached X depth, Reached Y depth etc..) - Announced today
  • Well hits TD (Total Depth) of ~4,200m 🔄
  • Wireline logging tools are run and data analysed
  • Case and suspend for future testing

Mongolian Coal Bed Methane (CBM) gas project:

🔄 Extended production testing

🔄 2023 exploration program

Mongolian Green Hydrogen Project:

🔄 Financing for a pilot plant

🔄 Offtake agreement for the pilot plant

🔄 50/50 Joint Development Agreement (JDA)