EXR moving into flow test phase at its QLD gas project
Our energy Investment Elixir Energy (ASX: EXR) just put out an update on its QLD gas project.
EXR recently finished drilling the project and has already managed to show:
- A free-flowing section at the very end of its well - EXR was primarily targeting unconventional gas, which would need to be stimulated before flow testing. Unexpectedly EXR hit a free flowing gas section and even managed to produce a gas flare.
See our article on the free flowing gas section here - Did EXR Just Unlock Another Australian Deep Gas Play?
- Net pay of ~154m across two primary reservoir targets - we covered that news in a Quick Take here.
Here are our key takeaways from today’s announcement:
- Well successfully cased and suspended
EXR has now cased, suspended and then installed a wellhead for its Daydream-2 well.
Right now, EXR has done everything it needs to so that its drill rig could be released and the well is prepared for a future flow test.
2. Haliburton appointed as contractor to run stimulation/flow testing program
EXR appointed Halliburton as its contractor to run the stimulation programs for the well in the new year.
Halliburton is one of the worlds biggest when it comes to these type stimulation programs - the focus in the lead up to the stimulation program will be on optimising the type of test the company will run.
EXR’s primary goal will be to try and increase the overall contingent resource for the project.
3. Fieldwork is to start in February.
EXR confirmed that for the next few months data acquisition/analysis would be ongoing.
After all of that work is done, EXR expects to be on site in QLD in February.
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 ✅
- Case and suspend for future testing ✅
Results are analysed and flow test is prepared 🔄
