Elixir Energy (ASX:EXR) unexpectedly discovers a naturally permeable gas-bearing zone within its Daydream-2 appraisal well in its Grandis gas project in QLD

The Daydream-2 well has reached a TD of 4300 metres

This deeper TD provides operational flexibility for the next phases of Elixir’s appraisal plans

Drilled ahead of schedule and under budget, showcasing operational efficiency.

Elixir Energy last traded at 10.8 cents

Elixir Energy (ASX:EXR) has unexpectedly discovered a naturally permeable gas-bearing zone within its Daydream-2 appraisal well in its Grandis gas project in Queensland.

The Daydream-2 well has reached a total depth (TD) of 4300 metres, exceeding the initial plan by approximately 100 metres.

This deeper TD provides operational flexibility for the next phases of Elixir’s appraisal plans.

During the final 100 metres of drilling, a significant event occurred when gas flowed from the formation into the wellbore.

In an unexpected turn of events, the gas flowed to the surface without stimulation, creating a flare captured on video available on Elixir’s YouTube channel.

The volume of gas flared was estimated at approximately 50,000 cubic feet. Despite this unforeseen development, the well was safely and successfully drilled to the extended TD of 4300 metres.

The unexpected discovery of a permeable gas-bearing zone at this depth holds immense potential for Elixir’s Grandis gas project.

While further work is needed to fully understand the implications, this discovery could be a game-changer for the company.

During drilling through the Permian strata, gas shows persisted, with peaks of up to 800 units noted within a gross interval of 607 metres.

The predominant lithologies in this interval were sandstones, coals, and siltstones.

“Flowing gas without stimulation from a deep section is immensely exciting for Elixir,” EXR Managing Director Neil Young said.

“Although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties.” 

Elixir Energy last traded at 10.8 cents.