EXR: Daydream-2 Progress Update
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.”
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.
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:
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)