EXR Preparing for a Flow Test at its QLD Gas Project
Our energy Investment Elixir Energy (ASX: EXR) is now less than two months away from flow testing its QLD gas project.
At its project, EXR has a 3.6 trillion cubic feet (2U) prospective resource on top of the projects ~395 billion cubic feet contingent resource.
Following last year’s drill program, EXR has been preparing to flow test the well for the past ~3-4 months.
Today, EXR confirmed that the clean out of the Daydream-2 wellbore was being completed ahead of the company’s Diagnostic Fracture Integrity Tests (DFITs) program.
The DFIT is the precursor to EXR’s stimulation/flow test at the well.
EXR expects the flow tests to run from May through to June.
EXR’s flow test will be testing the well to see if flow rates are high enough for the well to be commercialised and for EXR’s resource to be converted into a reserve.
Some context on EXR’s QLD gas project:
Late last year, EXR drilled its Daydream-2 well in QLD and here is what happened:
- EXR was drilling an appraisal well targeting primarily an unconventional tight gas structure - EXR hit gross pay of ~607m of the unconventional gas structures. A few weeks later EXR announced ~154m of net pay across these structures.
- The unexpected news was that EXR hit a conventional section at the end of its well flowing free gas to surface. Field estimates were for ~50,000 cubic feet of gas - which had to be flared…
We covered that big news in our last EXR note here - Did EXR Just Unlock Another Australian Deep Gas Play?
What happens next?
EXR expects the flow testing program to start in Mid-April 2024.
Over the next 2 weeks EXR expects to complete a wellbore clean out and “Diagnostic Fracture Integrity Tests (DFITs)”.
Below is a timeline EXR had previously released for the Daydream-2 well:
