Elixir Energy announces unexpected gas-bearing zone discovery

Release Time：07 Dec,2023

<p style="text-align: center;"><img src="/ueditor/php/upload/image/20231207/1701950116147168.png" title="1701950116147168.png" alt="4.png"/></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">Elixir Energy (ASX:EXR) unexpectedly discovers a naturally permeable gas-bearing zone within its Daydream-2 appraisal well in its Grandis gas project in QLD</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">The Daydream-2 well has reached a TD of 4300 metres</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">This deeper TD provides operational flexibility for the next phases of Elixir’s appraisal plans</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">Drilled ahead of schedule and under budget, showcasing operational efficiency.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">Elixir Energy last traded at 10.8 cents</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">Elixir Energy (ASX:EXR)&nbsp;has unexpectedly discovered a naturally permeable gas-bearing zone within its Daydream-2 appraisal well in its Grandis gas project in Queensland.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">The Daydream-2 well has reached a total depth (TD) of 4300 metres, exceeding the initial plan by approximately 100 metres.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">This deeper TD provides operational flexibility for the next phases of Elixir’s appraisal plans.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">During the final 100 metres of drilling, a significant event occurred when gas flowed from the formation into the wellbore.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">In an unexpected turn of events, the gas flowed to the surface without stimulation, creating a flare captured on video available on Elixir’s YouTube channel.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">The volume of gas flared was estimated at approximately 50,000 cubic feet. Despite this unforeseen development, the well was safely and successfully drilled to the extended TD of 4300 metres.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">The unexpected discovery of a permeable gas-bearing zone at this depth holds immense potential for Elixir’s Grandis gas project.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">While further work is needed to fully understand the implications, this discovery could be a game-changer for the company.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">During drilling through the Permian strata, gas shows persisted, with peaks of up to 800 units noted within a gross interval of 607 metres.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">The predominant lithologies in this interval were sandstones, coals, and siltstones.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">“Flowing gas without stimulation from a deep section is immensely exciting for Elixir,” EXR Managing Director Neil Young said.</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">“Although these are still early days, the unexpected intersection of a permeable gas zone this deep in the section may unlock another new Australian deep gas play and will be of interest to many parties.”&nbsp;</span></p><p style="text-align: justify;"><span style="font-family: arial, helvetica, sans-serif; font-size: 12px;">Elixir Energy&nbsp;last traded at 10.8 cents.</span></p><p><br/></p>