EXR to drill its QLD gas project in the last week of October
Our energy Investment Elixir Energy (ASX: EXR) has set a spud date for its Daydream-2 well.
EXR expects to be drilling its QLD gas project in the last week of October.
What is EXR drilling and what is the goal?
EXR’s Daydream-2 well will be targeting a ~395 billion cubic feet contingent resource.
EXR’s well will be drilled down to ~4,200m and target the same reservoir units that was proven at Daydream-1 which was drilled ~5 kilometres and now in the hands of $300BN oil and gas major Shell.
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.
🎓 To see the stages of an oil and gas resource check out the following: How to Read Oil & Gas Resources
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?
Between now and the spud date in late October EXR will be completing:
- Long lead item orders.
- Mobilisation on site.
- Wellpad construction (expected to be completed in September).
- Selection of contractors to run the program.
