EXR to drill its QLD gas project early next week.
Our energy Investment Elixir Energy (ASX: EXR) just put out an update on its QLD gas project.
EXR’s SLR 185 rig has been released by the current operator AND is now on its way to EXR’s site.
EXR expects to be drilling early next week.
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 project sits right next to a well that Shell is currently drilling and so there is a good chance the oil and gas major is watching what EXR is doing.
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:
(Source)
What’s next for EXR?
QLD gas project:
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) 🔄
