Elixir Energy Ltd (ASX:EXR) has intersected strong gas shows ahead of schedule as drilling of the Daydream-2 nears completion at the 100%-owned Grandis Gas Project in the Taroom Trough of Queensland’s Bowen Basin.
Daydream-2 intersected the primary target Kianga Formation at 3,694 metres, close to the original prognosis, with elevated gas shows immediately recorded by the mud logging team.
The well intersected the primary objective after 19 days of drilling operations, which is several days ahead of schedule.
38-times above background
Upon intersecting the first coal and sand, the gas shows increased from 20 units to a peak of 777 units, which represents a 38-times increase above background.
Elixir’s managing director Neil Young said: “The drilling performance at Daydream-2 continues to impress. So far, the well has been drilled ahead of schedule and under budget.
"The excellent gas shows encountered as we have entered our primary target meet our appraisal objectives and we look forward to reaching total depth and determining the overall extent of the gas-bearing formations very shortly.”
Similar to Daydream-1
The sands intersected have been described as very fine to medium grained and friable while the coal was described as vitreous to sub-vitreous and sub-blocky.
Elixir said these descriptions were in line with original expectations and similar to the Daydream-1 gas discovery well.
The remaining reservoir section of Daydream-2 will now be drilled to a Total Depth (TD) of around 4,200 metres, then wireline logs will be run and a petrophysical evaluation undertaken.
Following this, the well will be cased and suspended for future stimulation and testing operations, planned for the New Year.