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    Elixir upgrades contingent resources for Grandis gas project in Queensland

Summary

The upgrade can be attributed to the Daydream-2 drilling results.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, News By Country, Australia

Elixir upgrades contingent resources for Grandis gas project in Queensland

Australia’s Elixir Energy announced on May 27 an increase in the contingent resource booking for its 100%-owned Grandis gas project (ATP 2044) in Queensland.

The upgrade can be attributed to the Daydream-2 drilling results. An independent expert certified a 2C increase of 328%, bringing the total to 1,297bn ft3.

The key contingency for Project Grandis is the flow rate. While the company has achieved a flow rate of 1.3mn ft3/day from the lower-most Lorelle Sandstone, the upper zones have not yet been tested. The Daydream-2 appraisal programme is expected to resume in the next month. The company said further updates on more specific time frames are anticipated shortly as negotiations with various subcontractors are finalised.

“We are naturally delighted with the ongoing material build-up of the very significant contingent resources in our exceptionally well-located Project Grandis. As our appraisal programme resumes in the next month or so, the success case should deliver yet more substantial increases,” said Elixir’s managing director, Neil Young.

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