Elixir reports rise of 328% in contingent resources at QLD gas project

Queensland-focused gas explorer and developer Elixir Energy Ltd (ASX:EXR) has reported a 328 percent increase (to 1,297 billion cubic feet) in its contingent resources for the Grandis Gas Project, based on drilling results at the Daydream 2 appraisal well and data analysis.

Elixir’s team used seismic interpretation, core analysis, wireline petrophysics, chromatographic gas analysis, DFITs, production test analysis and gas sampling to analyse drilling, logging and test data to produce the resource estimate for Grandis, which is located in Queensland’s Bowen Basin.

The analysis focused only on data connected to sandstones in the gas bearing Permian section of the project, but not the project’s coal resources, which will be subject to stimulation and production testing later on this year.

Elixir also wants to test flow rates at the project’s upper zones, with a flowrate of 1.3 million cubic feet per day achieved from the Lorelle Sandstone, which is the lower-most zone.

Managing director Neil Young said the company aimed to continue appraisal work in the near future, and was hoping to gain another upgrade.

“We are naturally delighted with the ongoing material build-up of the very significant contingent resources in our exceptionally well-located Project Grandis,” he said.

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

Elixir has been trading at 10.7 cents.