Elixir Energy spuds Daydream-2 appraisal well in Queensland

Sydney-listed Elixir Energy has spudded the Daydream-2 appraisal well at its 100% owned Grandis gas project (ATP 2044) located in the Bowen basin in Queensland, Australia, the company announced on November 10.

The well is expected to take around a month to reach its planned total depth of 4,200 metres. Daydream-2 is an appraisal well located around 5 km from the Daydream-1 discovery well drilled by BG Group (now Shell) in 2011, which encountered a thick gas bearing column in the Permian section and flowed gas to surface.

Elixir's managing director, Neil Young, said: "We should hit our target depth a few weeks before Christmas and then head into the New Year with the major stimulation and flow testing program that the well will undergo. Success will mark a key milestone in opening up a very large new gas play in Queensland that is exceptionally well located to supply both domestic and international gas markets."

Elixir recently entered into a data sharing agreement with fellow Australian energy company Santos in connection with the Grandis gas project.