Elixir Energy Advances Bowen Basin Drilling with Xstate Farmout Agreement

April 07, 2025 04:23 PM AEST | By Team Kalkine Media

Google News:

Elixir Energy Advances Bowen Basin Drilling with Xstate Farmout Agreement — Image source: Shutterstock

Recent News

Solis Minerals Pushes Forward on Peru Exploration with ASX200 Focus

ASX200 Miners Face Headwinds as Commodity Outlook Softens: Lithium and...

ASX200 Slips from Recent Highs: Market Sheds Points as Most Sectors De...

PME and JHX: A Simple Valuation Snapshot of ASX200 Players

Highlights:

Elixir Energy Ltd (ASX:EXR) enters farmout agreement with Xstate Resources Ltd over the Diona sub-block in ATP 2077.

Xstate to fund and drill one exploration well, Diona-1, with Elixir fully carried and retaining interest.

Drilling location situated near existing gas infrastructure, aiming for efficient project execution.

Elixir Energy Ltd, a player within the energy sector, has announced a farmout agreement with Xstate Resources Ltd. The deal pertains to the Diona sub-block within Authority to Prospect (ATP) 2077, situated in Queensland's Bowen Basin. This agreement supports the next stage of exploration by assigning drilling responsibilities to Xstate while maintaining strategic involvement for Elixir.

Details of the Farmout Arrangement

Xstate Resources will assume a majority interest in the Diona sub-block through its commitment to fully fund the drilling of the Diona-1 exploration well. This activity is scheduled for execution during the third quarter of the calendar year, contingent on operational factors including rig availability. Elixir Energy will retain a minority interest in the sub-block and is fully carried through the costs associated with this initial drilling effort.

According to the agreement, Elixir will not be responsible for capital expenditure related to the Diona-1 well, while continuing to benefit from any outcomes derived from the drilling. Preparatory steps are already in motion to position the project for timely deployment.

Strategic Infrastructure Location

The Diona-1 well will be situated near an existing gas gathering line that connects to the Wallumbilla Hub. This infrastructure is currently under-utilised, and its proximity to the drilling location introduces logistical efficiency for any commercial developments. The planned well aims to access conventional gas formations within the Bowen Basin, a known resource-rich region.

This arrangement forms part of Elixir’s broader approach to managing and advancing its assets in the area. The acquisition of ATP 2077 had previously added supplementary acreage to Elixir’s Grandis Project, located in the Taroom Trough. With this agreement, the company fulfills a significant portion of its exploration commitments associated with ATP 2077 through external partnership.

Elixir’s Portfolio Remains Diversified

Elixir Energy maintains full ownership over the Taroom Trough sub-blocks A and B, which are excluded from the agreement with Xstate. These sub-blocks continue to serve as a central component of the company’s exploration interests. The Diona farmout strategy complements Elixir’s existing position while conserving internal capital for broader project development across its portfolio.

This development positions Elixir among other ASX 200, Energy Stocks focused on leveraging infrastructure advantages in Queensland’s gas basins. By engaging in such arrangements, companies like Elixir optimize asset management while preserving alignment with long-term project objectives.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.