EXR flow testing in next few days
Our energy Investment Elixir Energy (ASX: EXR) just put out an update from its QLD gas project.
EXR confirmed today that the company was in the final stages of mobilisation on site and that the final phase of work before the flow test would happen “over the coming weekend”.
That means in the next few days EXR will start flow testing its Daydream-2 well.
Results from the Lorelle Sandstone flow test are expected “toward the end of next week”.
After that EXR will start the stimulation of five other zones in its well.
The flow test is a huge catalyst for EXR because it will ultimately determine whether or not EXR’s well can be commercialised.
This project already has a 1.297 trillion cubic feet contingent gas resource - all EXR needs to show is that it can flow at commercially viable rates.
So far EXR has already proven a peak flow rate of up to 2.3 million cubic feet of gas per day from one single reservoir alone - on its own that is a pretty solid start considering the threshold EXR set for commerciality is ~2.5 million cubic feet of gas per day.
We recently topped up our Investment in EXR at the 10c placement and are hoping EXR can deliver strong flows from the well.
We think that a commercial flow rate will be key to unlocking interest from deeper pocketed gas producers that are active in this part of QLD (Shell & Santos to name a few…).
We wrote a detailed note on the upcoming program for EXR where we covered:
- The context on EXR’s QLD gas project
- What we want to see from the upcoming flow test
- The activity of majors in htis part of QLD
- Why we think EXR has the right team to make it happen with Daydream-2
Check out that note here: EXR - back on site flow testing - results in coming weeks?
What’s Next for EXR?
EXR is about to start flow testing its Lorelle Sandstone in the next couple of days.
Here is where we think EXR sits relative to its flow test timeline:
