Elixir Energy To Step Up Activity At The Grandis Gas Project

Elixir Energy Ltd (ASX: EXR) is aiming for economic extraction of gas at its Grandis Gas Project in Queensland in 2024.

Recently it registered a significant increase in prospective resources to 3.6 Tcf (2U).

Operators have discovered the Taroom Trough, which is drawing more and more attention from the gas industry.

Any economic extraction of gas at Grandis would change the valuation dynamic.

Not content with Grandis, Elixir is also focused on a major project in the South Gobi, Mongolia.

Elixir has also been developing the Gobi H2 green hydrogen project and solar project in Mongolia.

Grandis Gas Project

In Queensland, the Grandis Gas Project (ATP 2044) recently had a significant increase in prospective resources to 3.6 Tcf (2U).

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

The hub is handily connected to domestic and international markets.

A program will look to convert these prospective to contingent resources.

At the project, a coiled tubing unit has recently been mobilised and is currently cleaning out the Daydream-2 cased wellbore.

This is a pre-cursor to the Diagnostic Formation Integrity Test (DFIT) program which will follow shortly thereafter.

The results of this DFIT program will then be used to optimize the subsequent stimulation and flow testing phases of Daydream-2, which will run from April through to around June.

The detailed design of the stimulation and testing program has now been finalised, with a total of six zones to be stimulated.

These zones cover around 47 metres of pay of a total of 245 metres.

Following the stimulation program will be a series of flow tests in May and June.

Neil Young, managing director, said “The Daydream-2 well at Grandis will be the scene of intense activity through to around the middle of the year as we now move into the key stimulation and flow testing phases.”

In Mongolia, operations continue at the Nomgon Project, the company’s most mature asset.

At Nomgon, the current key objective is to continue to de-pressurise the gas-bearing coal reservoir through the ongoing pumping of water therefrom.

The company is currently considering adding additional pilot wells to the project to increase the pace of de-pressurisation.

 

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