Elixir Energy - Daydream-2 Operations Update - 30 September 2024
EXR (EXR) Share Update September 2024 Sunday 29th
Elixir Energy Announces Final Phase of Daydream-2 Well Testing
Elixir Energy Limited (ASX: EXR) has announced the commencement of the final phase of flow testing for its Daydream-2 well in Queensland's Taroom Trough.
Instant Summary:
- Coil Tubing Unit (CTU) deployed to Daydream-2 wellsite.
- Final phase of flow testing to begin later in the week.
- Operations will focus on removing proppant and fluid to achieve optimal flowrate.
Operational Update
Elixir Energy Limited (Elixir) has provided an update on the operations at its Daydream-2 well, part of the company's 100% owned Project Grandis in Queensland's Taroom Trough. The Coil Tubing Unit (CTU) has been released from a neighboring operator and is now deployed at Elixir's location. This unit will be used to clean out fluid and proppant that have accumulated at the bottom of the well.
The CTU has been rigged up on the wellbore, and the operations will focus on removing the proppant and fluid to achieve an optimal stabilized flowrate. Testing is anticipated to begin later in the week.
Management's Perspective
Elixir's Managing Director, Mr. Neil Young, expressed his satisfaction with the ongoing collaboration with the neighboring operator, which has facilitated the use of the CTU. He also highlighted the excitement surrounding the imminent final stage of the Daydream-2 work program, which has been very successful to date.
Mr. Young stated, 'We are very pleased to continue the close operational working relationship with our neighboring operator over such matters as coordinating the utilization of the key CTU. And of course, we are very excited by the now imminent final stage of the to-date very successful Daydream-2 work program.'
The successful completion of the final phase of flow testing at the Daydream-2 well could have a positive impact on Elixir Energy's stock price. Achieving an optimal stabilized flowrate would demonstrate the well's productivity and potential, which could boost investor confidence. Additionally, the operational collaboration with the neighboring operator showcases Elixir's ability to efficiently manage resources and logistics, further enhancing its reputation in the market.
Investor Reaction:
Analysts are likely to view the announcement positively, given the successful progress of the Daydream-2 work program. The commencement of the final phase of flow testing indicates that Elixir is on track with its project timeline, which could reassure investors. However, the actual impact on the stock price will depend on the results of the flow testing and the achieved flowrate.
Conclusion:
Investors should keep an eye on the results of the final phase of flow testing at the Daydream-2 well. The successful completion of this phase could signal a significant milestone for Elixir Energy and potentially lead to a positive market reaction. Staying informed about the company's progress and operational updates will be crucial for making informed investment decisions.