Elixir Energy operations update on Grandis project

Elixir Energy Limited (ASX: $EXR) has provided an operations update on its 100% owned Grandis project in Queensland. The company successfully stimulated the Lorelle Sandstone, indicating the potential for commercial gas flow. The recent testing data suggests that the Lorelle Sandstone alone could produce a commercial flow rate of gas, with plans for staged development already underway.

Executive commentary on operations update

Whilst the logistics and scheduling issues are frustrating, we are extremely encouraged by the results of the first stimulation stage. Given factors such as the highly favorable gas market location, our analysis indicates that this well can deliver commercial flows from the Lorelle Sandstone alone, with additional flows from the upper levels just adding to the economic returns. Albeit slightly delayed, the program is otherwise completely on track and we look forward to matching this early success with the additional 5 stages to be completed as soon as logistically possible.

Summary of Elixir Energy's operations update

Elixir Energy Limited (ASX: $EXR) has successfully stimulated the Lorelle Sandstone, indicating the potential for commercial gas flow at its Grandis project in Queensland. The company's technical and economic modeling suggests that the Lorelle Sandstone alone could produce a commercial flow rate of gas, with plans for staged development already underway. Despite some operational delays, the program remains on track, and negotiations with relevant sub-contractors are in progress to finalize a more precise timetable. Elixir's Managing Director, Mr Neil Young, expressed optimism about the project's potential and looks forward to achieving further success with the additional stages of the program. The company's ambitions include engaging with gas offtakers in the region and capitalizing on the favorable gas market location, aiming to deliver economic returns from the project.