EXR stimulation program underway - flow test in coming weeks
Our energy Investment Elixir Energy (ASX: EXR) just kicked off its stimulation program at its QLD gas project.
The stimulation is the last step before EXR flow tests the projects which will be the major catalyst for the entire exploration program.
EXR’s upcoming flow test will be all about proving the projects commercial potential.
EXR expects the flow tests to start in May and run through to June.
EXR’s project already has a 3.6 trillion cubic feet (2U) prospective resource on top of an existing ~395 billion cubic feet contingent resource.
We are hoping EXR can add significantly to the surprise news we got a few weeks back when it flowed gas WITHOUT any stimulation from the conventional gas section of the well.
That section flowed ~1.3 mmscf per day on a stabilised basis and got a peak result of 2.3 mmscf per day.
The free gas (conventional) column that produced today’s flow came from a reservoir ~17m thick.
EXR is still yet to stimulate and test the other ~245m of net pay across the unconventional parts of the well.
The stimulation & subsequent flow test will be looking at the unconventional sections of the well which is explained relatively well in the video below:
(Source)
Going into the flow rate our expectations across all reservoirs are as follows:
- Bull case = >5mmcf per day flow rate
- Base case = 2-5mmcf per day flow rate
- Bear case = <2mmcf per day flow rate
What’s next for EXR?
Below is a timeline EXR had released in a recent presentation for its Daydream-2 flow test:
