EXR Provides Update on Operations at Daydream-2 Project
Today, our Queensland Oil and Gas Investment Elixiry Energy (ASX: EXR) has announced updates on their operations in their 100% owned Grandis Project near Wallumbilla gas hub in Queensland.
Following on from recent operational issues in the stimulation phase of the Daydream-2 appraisal program, EXR has engaged private Australian well services company Condor Energy to complete the remaining stimulation stages.
Condor has advised Elixir that it will be in a position to recommence this work in later July/Early August.
Below is an image of Condor Energy’s Stimulation Fleet:
The exact timing will become clearer in the following weeks depending on the availability of coil tubing equipment currently being used by a neighbouring operator.
Why This Matters
Successful stimulation and testing at Daydream-2 is critical for appraising the 1.3 Tcf contingent gas resource EXR has certified in the Permian sandstones. The Lorelle Sandstone has already achieved a high flow rate, and further positive results could open up a significant new gas play for Australia's east coast market which faces tightening supply.
The Global Need for New Gas Supply
Rising LNG demand and the disruption of Russian pipeline gas supplies have tightened global gas markets. This has sparked a renewed focus on developing new gas resources, particularly in stable jurisdictions like Australia that can supply regional markets.
We think EXR's Queensland project is well-positioned to supply Australia's east coast, which is facing an increasing supply gap.
We’re hoping that positive results from EXR’s project could attract interest from domestic and export buyers seeking long-term gas contracts.
What’s Next for EXR?
Start drilling at Queensland Gas asset
We want to see EXR receive flow test from its 100% owned Queensland gas project where it already has a 2C (contingent resource) of 395 billion cubic feet (BCF).
🔄Flow testing of all target zones planned for August 🔬
🔄Further appraisal and development planning based on results ⛽
Read more about EXR’s QLD gas project in our latest EXR note:
