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Highlights
- Elixir Energy Ltd (ASX:EXR) expands its stake in the Taroom Trough through farm-in agreements.
- New farm-in adds 1.1 trillion cubic feet equivalent (TCFE) in contingent resources.
- Capital raising of up to $9 million to fund exploration and development programs.
Elixir Energy Ltd (ASX:EXR) has significantly bolstered its presence in the gas-rich Taroom Trough of Queensland with two strategic farm-in agreements with energy major Santos Ltd (ASX:STO). These agreements see Elixir securing a 50% working interest in two additional exploration permits, ATP 2056 and ATP 2057, while also adding a net contingent resource of 1.1 trillion cubic feet equivalent (TCFE) of gas to its portfolio.
Certified by independent auditor ERCE Australia Pty Ltd, this expansion brings Elixir's total contingent resources in the Taroom Trough to 3.0 TCFE. This substantial addition is set to enhance the company’s long-term growth prospects, particularly as it continues to focus on unlocking the gas potential in the region.
The expansion is backed by a robust capital raising initiative of up to $9 million, which will provide the necessary funding for the planned exploration work. Elixir’s managing director, Neil Young, expressed strong optimism about the deal’s value for shareholders, noting that it significantly increases the contingent resources owned per share despite the capital raising efforts.
The newly acquired acreage sits at the extension of the basin-centred gas (BCG) play proven in ATP 2044, and it contains more updip targets, making it a natural extension to Elixir’s existing assets. The added permits, ATP 2056 and ATP 2057, present a strong strategic addition to the company’s Grandis Project, particularly given the ongoing drilling activities in the area by other operators.
Under the terms of the farm-in, Elixir will fund and operate initial programs in both permits. In ATP 2056, Elixir plans to drill the Lorelle-3 well to a depth of 3,100 meters, scheduled for the third quarter of 2025. This well will focus on evaluating and testing new techniques for identifying optimal drilling sections. In ATP 2057, Elixir will conduct a seismic survey, acquiring 200 kilometers of 2D data, expected to occur in 2026.
To fund this expansion, Elixir is raising $7 million through a placement of 199,468,466 new shares at a price of 3.5 cents per share. This represents a discount to the last closing price and the five-day VWAP, but the deal has attracted strong demand from institutional investors. Additionally, existing shareholders will have the opportunity to participate in a shareholder placement to raise up to $2 million.
With these advancements, Elixir Energy is positioned to capitalize on its expanding resources in Queensland’s promising Taroom Trough.
