Elixir Energy - Daydream-2 Operations Update - 9 August 2024
ELIXIR ENERGY LIMITED (EXR) Share Update August 2024 Thursday 8th
Elixir Energy Provides Update on Daydream-2 Operations
Elixir Energy Limited (ASX: EXR) has announced significant progress in its Daydream-2 program within the Grandis Project, located in Queensland's Taroom Trough.
Instant Summary:
- Final equipment mobilized to the Daydream-2 site.
- Milling of plug set above the Lorelle Sandstone scheduled for the weekend.
- Flow testing of the stimulated Lorelle Sandstone to follow immediately after.
- Additional HSE inspections conducted due to well depth and high pressure.
- 32-person camp operational at the wellsite to reduce travel risks.
Operational Progress
Elixir Energy Limited has made considerable strides in the Daydream-2 program, which is part of its 100% owned Grandis Project in Queensland's Taroom Trough. The company is in the final stages of mobilizing all necessary equipment for the stimulation and testing of the Daydream-2 well. Over the coming weekend, the plug set above the Lorelle Sandstone is scheduled to be milled out, with flow testing to commence immediately thereafter.
Given the depth and high pressure of the Daydream-2 well, Elixir has undertaken additional Health, Safety, and Environmental (HSE) inspections to ensure that the stimulation and testing processes are conducted smoothly and safely.
Equipment and Preparations
The Coil Tubing Unit (CTU), recently imported from New Zealand, has been thoroughly checked and function-tested in cooperation with Elixir’s neighboring Taroom Operator. The CTU is essential for removing the plug above the Lorelle Sandstone before flow testing can begin. Additionally, the wellhead manifold and 'Christmas Tree' valves have been serviced and pressure tested to 13,000 psi, ensuring they are fully functional and ready for tie-in to the stimulation spread.
More than 815,000 pounds of proppant and micro-proppant are being transported to the wellsite in preparation for the five remaining stages of stimulation that will follow the Lorelle flow test. A 32-person camp is now fully operational at the wellsite, reducing the need for offsite accommodation and significantly lessening the risks associated with road traffic incidents, especially in darker conditions.
Upcoming Announcements
Elixir Energy plans to announce the results of the Lorelle Sandstone Test once the flow is complete and the data has been interpreted, which is expected towards the end of next week. The stimulation of five zones above the Lorelle Sandstone will follow this initial flow test. Elixir’s Managing Director, Mr. Neil Young, stated, 'The complex preparations for Daydream-2’s stimulation and flow testing are now all but complete. We are now keenly looking forward to the flow testing of the Lorelle Sandstone within only a few days.'
The successful completion of the Daydream-2 stimulation and testing program could significantly boost Elixir Energy's stock, as it would demonstrate the company's ability to manage complex operations and potentially increase its resource estimates. The additional HSE inspections and the operational camp indicate a strong commitment to safety and efficiency, which could positively influence investor confidence.
Investor Reaction:
Analysts are likely to view this update positively, given the detailed preparations and safety measures taken by Elixir Energy. The successful flow testing of the Lorelle Sandstone could lead to an increase in stock value, as it would validate the company's technical capabilities and resource potential.
Conclusion:
Investors should keep an eye on the upcoming results of the Lorelle Sandstone Test and subsequent stimulation stages. Elixir Energy's ability to execute complex operations safely and efficiently could make it a compelling investment opportunity in the energy sector.