EXR hits ~154m of net pay at its QLD gas project
Elixir Energy (ASX: EXR) just announced the wireline logging results from its gas project in QLD.
EXR hit 154m of net pay across two of its primary reservoir targets.
EXR also confirmed that the well had hit ~65 metres of coal zones that would be target areas EXR looks to stimulate and flow test.
That means EXR could actually upgrade its net pay numbers once the final results are out and EXR is closer to its flow testing program next year.
EXR also confirmed production liners would be run to case off the well so that its ready for flow testing next year.
The next bit of news to look out for will be from the lab results, which will ultimately help plan the flow test.
How does EXR’s results compare to nearby wells?
EXR’s well was 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.
For a quick overview of the well, check out this video:
(Source)
EXR drilled its well in the same region as another ASX listed Omega Oil and Gas.
At the moment, EXR has only put out net pay numbers, which compare relatively strongly to Omega’s wells.
For context, here are the two well’s net pay numbers side by side:
- EXR (Daydream-2) - net pay of ~154m.
2. Omega Oil and Gas (Canyon-1 & Canyon-2) - net pay of ~85.1m in the first well and ~108.2m in the second well.
What’s next for EXR’s QLD gas project?
Drilling results 🔄
- Drilling updates along the way (i.e. reached X depth, Reached Y depth etc..) ✅
- Well hits TD (Total Depth) of ~4,200m ✅
- Wireline logging tools are run and data analysed 🔄 - First results announced today.
- Case and suspend for future testing 🔄
