Elixir Energy (ASX:EXR) - Poised for Success with Major Gas Play

Interview with Greg Channon, Chief Geoscientist of Elixir Energy Ltd. Our previous interview: https://www.cruxinvestor.com/posts/elixir-energy-asxexr-drilling-for-big-gas-in-australia-3282 Recording date: 19th March 2024 Elixir Energy (ASX:EXR) is poised for major success with its gas play in the Bowen Basin, Queensland, Australia. The company's recent drilling of the Daydream 2 well has revealed exciting results that could significantly increase the project's resource potential and commercial viability. Key highlights from the Daydream 2 well include: A gross interval of 600 meters, with 245 meters of net pay identified. An unexpected permeable sandstone zone between 4,200 and 4,220 meters, which flowed gas without stimulation. The presence of clay coatings on the sandstone grains, preserving porosity and permeability at depth, similar to producing fields in the Perth Basin. Low CO2 content (around 1%) in the gas, reducing the need for costly treatment. Elixir Energy is now embarking on a comprehensive testing program over the next two months to further evaluate the well's potential. The program will target six zones, including the permeable sandstone, tight sandstones, and coals. The tests will provide crucial data on flow rates, reservoir characteristics, and the effectiveness of stimulation techniques. Success in the testing program could be a key de-risking event for the project, demonstrating its commercial viability and potentially leading to a re-rating of the company's shares. Investors should watch for sustained gas flows from the tested zones, which would indicate the project's long-term potential. In addition to the contingent resource estimated in 2022, the Daydream 2 well has also revealed significant absorbed gas content in the coal seams. This could further enhance the project's resource base, with a prospective resource estimate of 3.6 trillion cubic feet of gas across the greater area. With the testing program set to commence and the potential for positive news flow in the coming months, Elixir Energy presents an attractive opportunity for investors looking to gain exposure to a high-impact gas play in a promising region. View Elixir Energy's company profile: https://www.cruxinvestor.com/companies/elixir-energy Sign up for Crux Investor: https://cruxinvestor.com