Elixir Energy Ltd (EXR)

---

Daydream 2 Impressive Initial Flow Test

5 April 2024 9:33 AM. Original PDF: Open PDF | 4 Pages

Elixir Energy Limited announced highly successful initial flow test results from the Daydream-2 well in Queensland, achieving a maximum flow rate of 2.3 MMSCFPD and a stabilized rate of 1.3 MMSCFPD.

Summary

• Elixir Energy Limited conducted successful flow tests at the Daydream-2 well in Queensland.
• Achieved a maximum flow rate of 2.3 MMSCFPD and a stabilized rate of 1.3 MMSCFPD.
• This is the deepest unstimulated gas flow in onshore Australia East of the Perth Basin.
• Testing was not affected by recent heavy rain, showcasing good ease of access and infrastructure.
• Plans for further stimulation to increase flow rates and additional appraisal well Daydream-3 are underway.
• Gas samples from the test have low CO2 content, indicating high quality.

Highlights

• Maximum rate: 2.3 MMSCFPD
• Stabilized rate: 1.3 MMSCFPD
• Height of flare: estimated 15 meters
• Total gas produced over both flow periods: 0.6675 MMSCF
• CO2 component: 1.6%
• Depth of tested zone: 4,200 - 4,217 meters

Positives

• Highly successful initial flow test without stimulation.
• Stabilized flow rate achieved signifies potential for significant gas production.
• The flow test indicates a potential major contribution from the Lorelle Sandstone to the project's economics.
• The project's location and infrastructure support ease of access and further development.
• Low CO2 content in gas samples indicates pipeline quality gas.

Negatives

• Only a small percentage (19%) of the total net pay will be targeted in the upcoming stimulation program.

Key Dates

• 5 April 2024: Announcement date of the successful flow test results.

Alerts

• Contains better than expected results: yes
• Contains worse than expected results: no
• Contains expected results: no
• Sentiment: positive