EXR prospective gas resource increases to 3.6Tcf

Our energy Investment Elixir Energy (ASX: EXR) just increased the size of its prospective resource at its QLD gas project.

EXR’s project now has a 3.6 trillion cubic feet (2U) prospective resource on top of the projects ~395 billion cubic feet contingent resource.

An increase in the mid estimate by ~2.6 trillion cubic feet.

EXR also confirmed that it is currently reviewing its contingent resource and is hoping to increase that ahead of its flow test later this year aswell.

Some context on EXR’s QLD gas project:

Late last year, EXR drilled its Daydream-2 well in QLD and here is what happened:

• EXR was drilling an appraisal well targeting primarily an unconventional tight gas structure - EXR hit gross pay of ~607m of the unconventional gas structures. A few weeks later EXR announced ~154m of net pay across these structures.
• The unexpected news was that EXR hit a conventional section at the end of its well flowing free gas to surface. Field estimates were for ~50,000 cubic feet of gas - which had to be flared…

We covered that big news in our last EXR note here - Did EXR Just Unlock Another Australian Deep Gas Play?

Today, EXR took the data from the well and has managed to increase its prospective resource by ~2.5X.

The next stage of work will be about flow testing the well to prove it can be commercialised.

What happens next?

EXR expects the flow testing program to start in Mid-April 2024.

Over the next 2 weeks EXR expects to complete a wellbore clean out and “Diagnostic Fracture Integrity Tests (DFITs)” to start in March ahead of the flow test.

Below is a timeline EXR had previously released for the Daydream-2 well: