Elixir Energy's exploration breakthrough

Elixir Energy (ASX:EXR) has announced major progress in its exploration efforts in the Taroom Trough, Queensland. The company is working to establish a new gas play in this part of the Southern Bowen Basin, a key gas hub in Australia. Their Grandis Gas Project has made significant headway with the Daydream-2 appraisal well, confirming Basin Centered Gas and achieving commercial flow rates.

Elixir Energy's strategic outlook

Elixir Energy is making substantial progress in its gas exploration activities in the Taroom Trough. The company is focused on leveraging the unique geological setup of the region to unlock tight gas resources. The strategic location of the Grandis Gas Project in the Southern Bowen Basin allows easy access to the major gas hub at Wallumbilla. The Daydream-2 well has demonstrated commercial flow rates and led to a significant increase in resource estimates. Elixir Energy plans further appraisal activities, including potential drilling of Daydream-3, while continuing discussions for farmout opportunities and infrastructure options. The company's strategy is to strengthen its position in Australia's gas industry through strategic development and resource de-risking.

Executive commentary on gas exploration

The Taroom Trough's unique geological characteristics offer great potential for tight gas extraction, and our advancements with the Daydream-2 well mark a critical step forward. With the increased contingent and prospective gas resources, we are optimistic about the future development and commercialization of the Grandis Gas Project.