EXR QLD gas project update
Our energy Investment Elixir Energy (ASX: EXR) is now ~5 weeks away from drilling its QLD gas project.
Today, EXR confirmed that well pad construction was underway, long lead items are on the way to site & a water well is being drilled at its QLD gas project.
EXR expects to be drilling Daydream-2 next month.
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We also noticed that EXR is looking to “mobilise an on-site desorption lab” to test the rock structures (coals) in the region to see if they can contribute to an upgrade in the projects resource.
It gets a bit technical in the announcement but it looks like EXR’s team has determined that there could be gas in parts of the project that havent been looked at before.
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What is EXR drilling and what is the goal?
EXR’s Daydream-2 well is 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.
A reserve is typically the last step before a discovery can be commercialised.
EXR’s appraisal well will be aiming to:
- Prove commercially viable flow rates
- Increase EXR’s already large 395 bcf contingent resource.
- Book the project’s first gas reserves (converting contingent resources into reserves).
EXR recently put out a video which tells the full story pretty well, check out that video below:
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(Source)
What’s next for EXR?
QLD gas project:
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Mongolian Coal Bed Methane (CBM) gas project:
- Extended production testing 🔄
- 2023 exploration program 🔄
Mongolian Green Hydrogen Project:
- Financing for a pilot plant 🔄
- Offtake agreement for the pilot plant 🔄
- 50/50 Joint Development Agreement (JDA) 🔄