Can Elixir Energy Unlock the Full Potential of the Taroom Trough with Daydream-2?

$EXR Can Elixir Energy Unlock the Full Potential of the Taroom Trough with Daydream-2?

Elixir Energy Limited, an Australian-based energy company, has announced a significant milestone in its ongoing operations at the Daydream-2 well, part of its 100% owned Project Grandis in Queensland’s Taroom Trough. As of August 29, 2024, the company has successfully removed all temporary plugs that were installed between the well's six separate stimulated zones. This marks a critical step in the well's development, as it allows for unrestricted flow from all zones.

Well Performance: Gas and Fluid Flow to Surface

Following the removal of the plugs, the Daydream-2 well was put to the test, and it began flowing gas and completion fluid back to the surface freely, without any external assistance. This positive outcome indicates that the well is performing as expected, with all zones now fully open and contributing to the flow.

The well is currently in the clean-up phase, during which it is flowing both gas and the stimulation fluid (water) ... that was injected during the well's completion. To date, Elixir has recovered approximately 4,300 barrels of stimulation fluid out of the 10,392 barrels initially pumped into the well. This represents a 41% recovery rate, with the clean-up process expected to continue over the coming weeks.

Production Logging Tool (PLT) Operations to Commence

In the next phase of testing, Elixir Energy plans to deploy a Production Logging Tool (PLT) later this week. The PLT will be used to enhance the company’s understanding of the well’s performance, providing critical data on the volume of fluid in the well, the flow contribution from each individual zone, and the pressure conditions within these zones.

This data will be crucial for Elixir as it seeks to fully assess the potential of the multi-stacked pay zones in the Taroom Trough. The company has indicated that additional clean-up efforts may be required, potentially involving the return of the Coil Tubing Unit (CTU) to lift any remaining fluids from the wellbore before the completion of the testing program.

Managing Director’s Comments and Outlook

Elixir Energy’s Managing Director, Neil Young, expressed confidence in the ongoing operations, stating, “This final flow testing phase of the Daydream-2 program continues to go to plan. All stimulated zones are now exposed to the wellbore and we will continue to gather vital data over the weeks to come to better understand the massive potential of the multi-stacked pay zones in the Taroom Trough.”

As the clean-up and data-gathering processes proceed, Elixir Energy remains optimistic about the prospects of the Daydream-2 well. The company plans to issue further updates in the coming weeks as operations progress.

Elixir Energy’s operations at the Daydream-2 well are advancing steadily, with the successful removal of temporary plugs and the commencement of flow testing marking key milestones. The company’s methodical approach to testing and data collection will be instrumental in unlocking the full potential of the well, contributing to Elixir’s broader objectives in the Taroom Trough.

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