Elixir Energy (ASX:EXR) has announced it’s flown the first gas to surface from its QLD-based Daydream-2 well, part of the company’s Grandis assets.
Shares jumped nearly 15% to 16cps according to Cboe live pricing at 10.45am AEST. At the same time, Elixir Energy’s announcement on Friday is the most watched on HotCopper.
A drill run half funded by the Federal Government, the company reported the top-most stimulated coal zone downhole Daydream-2 has now clocked first flow – letting Elixir now kick off works towards an initial contingent resource.
The news also has a component that only true resources nerds will be able to appreciate – according to Elixir, Daydream-2 successfully flowing gas to surface is officially the deepest ever coal body in Australia to have done so (thanks to Elixir’s drillers.)
The top-most coals responsible lie between 3,678m and 3,786m depth. The company reported flow was unassisted.
Geotechs will now remove six plugs separating stimulated zones together in the Permian-age section of Daydream-2 before conducting a full-on flow test.
“This is a fantastic outcome for Elixir and the overall Taroom Trough,” Elixir MD Neil Young said.
“Now we have demonstrated that [gas] … can be flowed to surface. We consider this is just the start of an incredible journey of bringing on the very large new sources of gas that Australia vitally needs.”
That some uncertainty still remains with a view to volumes hardly dissuaded sentiment on HotCopper, with one user demonstrating the risk-on bullishness the forums are well known for.
EXR last traded at 14.5cps.