Slide 1: A Major New Play is Being Proven in Queensland's Taroom Trough
A Major New Play is Being Proven in Queensland’s Taroom Trough Neil Young, Managing Director, Elixir Energy 17 October 2024
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This document has been prepared by Elixir Energy Limited (ABN 51 108 230 995) (“Elixir”) in connection with providing an overview of its business to interested analysts/investors. This presentation is being provided for the sole purpose of providing preliminary backgrou
Slide 3: Introducing the Taroom Trough
Introducing the Taroom Trough • One of the few remaining places onshore Australia where a substantial gas resource could exist – and in a great location to access markets • Permian coals have sourced oil and gas fields on the flanks, but considerable gas volumes remain trapped within the depocentre
Slide 4: The Taroom Trough – An Advantaged Location
The Taroom Trough – An Advantaged Location The prolific Bowen Basin is now set to deliver another energy source • The Grandis Gas Project is very well located in the Taroom Trough in the Southern Bowen Basin • Australia’s premier physical and commercial gas hub – Wallumbilla – is immediately adjacen
Slide 5: Attractive to Large Sources of Capital
Attractive to Large Sources of Capital Securing capital for gas development needs to pass through multiple gates • The Taroom Trough is a favourable location for such large companies: 01 Brownfields – many majors, large LNG buyers, etc, are 02 Low emissions profile – the Taroom is low in CO2 (pipeli
Slide 6: Taroom: The birth of a new unconventional play in Australia
Taroom: The birth of a new unconventional play in Australia BCG BCG BCG Taroom Trough, Queensland Piceance Basin, USA Montney, Canada Definition: “Basin Centred Gas” or BCG Tight reservoirs surrounding source rocks that have such low permeability that generating hydrocarbons can’t escape (Permeabili
Slide 7: Fundamental Objectives of Daydream-2
Fundamental Objectives of Daydream-2 1. Prove the Basin Centred Gas (BCG) Play is present Pervasive accumulation - 600m gross interval over 1,000km2 (within ATP 2044 alone) Overpressure - 0.68 psi/ft Hydrocarbon source – Permian coals contain 20+ m3/t gas 2. Induce flow rates from multiple tight coa
Slide 8: Daydream-2: Multiple Breakthroughs
Daydream-2: Multiple Breakthroughs 1 Game-changing mechanical earth model validated Coal desorption via cuttings identifies 2 very high gas content 3 Free-flowing gas reservoir below 4,200m Successful pinpoint stimulation using 4 micro-proppant Stimulated deep coal zone flows gas for 5 first time 6
Slide 9: Grandis Project - Timeline
Grandis Project - Timeline Acquired SPV EnergyCapture Pty Ltd Detailed offset well review Finalise Daydream-2 well location 2022 Q1 Q2 Q3 Q4 Extensive Onshore Australia Initial Contingent Resource Booked Gas Opportunity Screening Independently certified by ERCE Establish small team of 395 Bcf of gas
Slide 10: Cracking The Taroom's Code
Cracking The Taroom’s Code The vast gas resources of the Taroom are starting to be unlocked In ATP 2044, the primary play-type is BCG - which is an CH4 unconventional accumulation with no structural trap required - the gas is present permit wide. Often called a “permeability jail” Elixir sees Grandi
Slide 11: Taroom Trough
Taroom Trough Queensland • Proven oil and gas generation • Proven tight, gas-saturated reservoirs • Large resource discovered ATP 2044 ATP 2044 Tight Gas Sands & Basin Centered Gas Plays 11
Slide 12: Daydream-2
GR Res D/N Gas Gas Sat. Daydream-2 Spudded November 2023 • Overpressured section predicted • Conservative well design – safe operations • TD = 4,300m Target Section ~600m • Intersected a substantial, gas-saturated, low-permeability sandstone and coal interval (>600m) • Better than expected (cleaner
Slide 13: Daydream-2 Gas-saturated Reservoirs
Daydream-2 Gas-saturated Reservoirs ATP 2044 NW Daydream-2 SE No formation water Daydream-1 • Gas shows comparable with Daydream-1 Kianga Fm. • As expected, all sandstones and coals were interpreted as gas- Back Creek Gp. saturated TWT • No water-saturated reservoir encountered Kick Combarngo Volcan
Slide 14: Lorelle Sandstone
Lorelle Sandstone Lorelle thickens downdip? NW Daydream-1 Daydream-2 SE ATP 2044 Kianga Fm. TWT Back Creek Gp. Kick 14
Slide 15: Daydream-2 - Lorelle Sandstone
Daydream-2 - Lorelle Sandstone • Petrographical analysis Porous and permeable sandstones >4,200m have identified clay coatings (rims) around individual quartz grains • These clay rims assist in ATP 2044 the preservation of primary porosity at Daydream-2 these depths by Cross Polarised Light reducing
Slide 16: Desorption Analysis of Deep Coals
Desorption Analysis of Deep Coals Daydream-2 Significant gas volumes remain in the coals 16
Slide 17: Stimulation Stages
3700m Stimulation Stages Upper Kianga Fm. coals tested Conventional Sands, Tight Sands and Coals 6 separately to 3800m confirm flow from • Stage 1 = Lorelle Sandstone 5 coals only • Stage 2 = Back Creek Group Sandstones • Stage 3 = Back Creek Group Coals 3900m 4 • Stage 4 = Lower Kianga Fm. Sandston
Slide 18: Improve Stimulation Outcomes Using Micro-Proppant
Improve Stimulation Outcomes Using Micro-Proppant Daydream-2 Deepest Coal Gas Flow in Australia gas flare from Stage 6 coal zone • The fracture complexity of coals make it difficult to generate a Stimulated Rock Volume to achieve commercial gas flows – the fractures keep closing • Laboratory testing
Slide 19: Key Gas Flows From Daydream-2
Key Gas Flows From Daydream-2 Final flowrate affected by Formation Damage “First commercial flow of Permian gas in the Taroom Trough” “Deepest unstimulated flow east of Perth Basin” “Deepest flow from a coal seam in Australia” • October 2024 • 3698-4217m • Stimulated flow coal and sst • 1 MMCFPD • A
Slide 20: Formation Damage
What happened during the final testing? Skin and formation damage built up over the extended period of testing: Clay rim swelling: Fluids introduced into the formation from the wellbore during drilling, stimulation and testing: KCl and water may have had an unexpected reaction with the reservoir nea
Slide 21: Potential Remedies to Skin and Formation Damage
Potential Remedies to Skin and Formation Damage Continued learnings and strategies to be implemented Closely monitor pressure drawdown from 1 reservoir during testing operations Refine fluid chemistry and monitoring during 2 operations Logistics management to reduce time between 3 operations Minimis
Slide 22: Growing & De-risking the Resource Base
Growing & De-Risking the Resource Base Grandis Project’s resource progression (ATP 2044 + ATP 2077 combined) has seen impressive growth Current Resources Contingent (2C) 1.47 Tcf Increased Acquisition of coal resource ATP 2044 Prospective (2U) 3.6 Tcf Post Daydream-2 Initial ERCE ERCE upgrade Acquis
Slide 23: What we have learnt:
What we have learnt: Massive learnings and inroads into the tight gas play from the drilling, stimulation and testing of Daydream-2: 1 1. Achieved a commercial flow rate 2 2. Increased 2C contingent resources by 328% to 1.47 Tcf 3 3. Increased 2U prospective resources by 180% to 3.6 Tcf 4. 4 Flowed
Slide 24: HSE & Other Achievements
HSE & Other Achievements • ~4,000 hours worked with no HSE incidents (Condor) • ~10,000 kilometres driven with no road accidents or incidents (Condor) • ~1 million pounds of proppant placed (Halliburton and Condor) • All operations fully contained on lease with no issues • Excellent relations mainta
Slide 25: Next Steps
Next Steps 1. Post well studies underway 2. Upgrading Contingent Resource to include coals 3. Progressing farmout discussions 4. Applying for a Potential Commercial Area (PCA) - up to 15 years retention 5. Ongoing and growing cooperation with neighbouring operators 6. Investigating potential infrast
Slide 26: In Summary
In Summary The World needs more gas for The East Coast has very The Taroom Trough has longer – now explicitly strong pricing, a growing multiple locational advantages recognised by Govt policy supply gap & LNG plant to serve these markets ullage The Taroom is currently The massive Taroom The results
Slide 27: www.elixirenergy.com.au
INVESTORS & MEDIA Neil Young Managing Director info@elixirenergy.com.au Phone +61 8 7079 5610 www.elixirenergy.com.au www.elixirenergy.com.au
Slide 28: Appendix 1A – Contingent Resources
Appendix 1A – Contingent Resources Based on the work undertaken by Elixir in ATP 2044, the Company sought an independently certified contingent resource estimate (from international firm ERC Equipoise Pty Ltd – “ERCE”) for ATP 2077 Sub- block A – see table below. The subclass of Contingent Resources
Slide 29: Appendix 1B – Prospective Resources
Appendix 1B – Prospective Resources The prospective resources of gas in the Permian coals in ATP 2044 includes both an adsorbed and fractured component, and is estimated as follows: *added arithmetically Notes: 1. Each reservoir target was evaluated probabilistically, and the reservoirs were added t
Slide 30: Appendix 1C – Notes to Resource Statements
Appendix 1C – Notes to Resource Statements 10. ERCE has used standard petroleum evaluation techniques in the preparation of this report. These 1. The evaluation date of the ERCE Contingent Resources is 27th May 2024 and 16th August 2024 techniques combine geophysical and geological knowledge with as