Elixir Energy Reveals Material Increase In Project Grandis Gas Resource

Elixir Energy Ltd (ASX: EXR) has revealed a material increase in the contingent resources at its 100% owned Project Grandis in Queensland.

Notably, drilling at the Daydream-2 appraisal well has booked an increase of 328% in 2C resource to 1,297 billion cubic feet (BCF) of gas.

These estimates have been independently certified by international firm ERC Equipoise (ERCE).

Well-connected hub

Project Grandis covers an area of 1,000 square kilometres close to existing gas transmission infrastructure centred on the Wallumbilla gas hub.

This hub is connected to domestic and international markets.

Resource based on sandstones

Elixir’s technical team and ERCE analysed drilling, logging and test data to make the resource estimates.

It is worth noting that these estimates are for the sandstones only in the gas bearing Permian section.

It does not include the prospective coal resources, which will be the subject of stimulation and production testing in the coming months.

Appraisal program to resume

The key contingency for Project Grandis is the flowrate.

Whilst the company has achieved a flowrate of 1.3 million cubic feet per day from the lower-most Lorelle Sandstone, the upper zones have not yet been tested.

The Daydream-2 appraisal program is expected to resume in the next month or so.

Further updates on more specific time-frames are expected to follow shortly, as current negotiations with various subcontractors are finalized.

Another upgrade expected

Elixir Managing Director Neil Young said: “We are naturally delighted with the ongoing material build-up of the very significant contingent resources in our exceptionally well located Project Grandis project.

“As our appraisal program resumes in the next month or so, the success case should deliver yet more substantial increases.”

Elixir had cash of A$12 million as on 31 March 2024.

 

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