EXR QLD gas project update

Published 21-SEP-2023 12:00 P.M.

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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.

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.

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: