Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) managing director Neil Young joins Proactive’s Jonathan Jackson to discuss the next phase of the Daydream-2 program slated to begin in around two weeks, utilising a new coil tubing unit (CTU) for flow testing at the 100%-owned Grandis Project in Queensland’s Taroom Trough. The prime contractor, Condor Energy, has imported this CTU from New Zealand to handle the high pressure and depths of the Taroom Trough.
The CTU will first be used at Daydream-2 to mill out the plug above the Lorelle Sandstone, which previously flowed gas at a stabilised rate of 1.3 million standard cubic feet per day (MMscfd).
Young, expressed satisfaction with the program's progress and highlighted the significant investments in the Taroom Trough's potential.
Elixir is collaborating with Condor and a neighbouring operator to ensure optimal use of the CTU and other key resources, anticipating some adjustments due to geological and operational factors. The next stage involves perforating and stimulating three sandstone and two coal zones in the Permian section, followed by a cleanup and flow testing period of a few weeks.
The initial test will independently flow test the uppermost coal section to prove up contingent resources. Subsequently, all six zones will be tested together with a target flow rate of 2.5 MMscfd. This represents just 19% of the total gas-bearing zones, suggesting potential for higher future flow rates.