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Highlights
- Elixir secures major Taroom Trough acreage via Santos farm-in
- Strategic funding and CEO appointment signal future growth focus
- Mongolian asset exit streamlines company’s Australian energy portfolio
Elixir Energy (ASX:EXR) has taken decisive steps toward cementing its footprint in Queensland’s Taroom Trough, achieving significant exploration and commercial milestones during the March 2025 quarter. These include a pivotal farm-in agreement with Santos for ATP 2056 and ATP 2057, granting Elixir a 50% interest in each permit and lifting its net Contingent Resources by 1.2 trillion cubic feet equivalent (TCFe).
The agreement not only raises the company’s total certified 2C Contingent Resources for Project Grandis to 2.6 TCFe—a 68% increase—but also positions Elixir as the holder of the largest net acreage in the Taroom Trough. This growing prominence in the East Coast gas market aligns with broader investor interest in energy-related ASX200 stocks amid tightening supply and rising prices.
The Grandis Gas Project, centered around ATP 2044 and ATP 2077, remains a core focus. Notably, Elixir completed its Daydream-2 appraisal campaign and is expecting a A$3.7 million R&D tax refund in the second half of 2025. The project’s location near the Wallumbilla gas hub and Gladstone LNG facilities offers strategic infrastructure advantages for commercialisation.
In a post-quarter move, Elixir farmed out a portion of ATP 2077—specifically the Diona sub-block—to XState Resources (ASX:XST). The agreement allows for a fully funded exploration well near existing gas infrastructure, paving the way for near-term development while Elixir retains full ownership of the remaining acreage.
Leadership also saw a key transition as Stuart Nicholls, former CEO of Strike Energy (ASX:STX), stepped in as Elixir’s new managing director and CEO. Nicholls brings a sharpened focus on reserve certification and long-term gas commercialisation.
Meanwhile, market dynamics continue to favour East Coast gas producers. Spot prices at Wallumbilla averaged A$13.55/GJ during the quarter, with expectations of a supply shortfall by Q3 2025. Infrastructure investments and activity from regional peers add to growing confidence in Queensland’s gas basin.
Further streamlining its strategy, Elixir has decided to exit its Mongolian operations—once valued at A$34 million—by mid-2025. The company granted a one-year purchase option to a potential partner for US$10 million, shifting full focus to Australian operations.
Elixir closed the quarter with A$7.2 million in cash and expects an additional A$3.7 million via its R&D refund, supporting its exploration plans. As interest in ASX dividend stocks remains high, Elixir’s capital management and exposure to a key energy hub could attract attention among income-focused and growth-oriented investors alike.
