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Highlights
- Drilling program fully funded for 2025.
- Fast monetisation potential at Diana-1.
- Strategic partnership helps offset exploration costs.
Elixir Energy (ASX:EXR) has outlined a clear roadmap for its ATP 2077 project, setting the stage for a busy and potentially transformative 2025. The energy explorer confirmed a farm-out agreement with Xstate Resources (ASX:XST), securing the funding for its upcoming Diana-1 well while retaining full control over deeper prospective assets.
The ATP 2077 license, granted by the Queensland Government in 2023, covers multiple gas plays. The farm-out agreement focuses on a shallow portion of the license. Under the terms, Xstate Resources will fund the drilling of Diana-1—expected to spud in Q3 2025—in exchange for a 50% interest in that specific area.
This strategy enables Elixir Energy to advance exploration without committing capital upfront, while still maintaining 100% ownership of the deeper Taroom Trough blocks. These deeper sections host significant unconventional gas potential and have already had contingent resources booked, highlighting their longer-term value.
Diana-1 is strategically located just a few hundred metres from an existing gas gathering line currently owned by AGL, enhancing its commercialisation potential. If drilling results are positive, the proximity to infrastructure could allow for rapid and cost-effective development. Elixir noted that current gas pricing at the Wallumbilla Hub sits around AUD 14 per gigajoule, adding further strength to the project’s near-term economics.
In addition to Diana-1, Elixir Energy is also preparing to drill the Laurel-3 well next year. This second well will be delivered in collaboration with Santos (ASX:STO), targeting a different type of gas resource and serving as a complement to the Diana-1 campaign. The dual-well strategy is designed to balance quick commercial returns with longer-term growth.
According to Elixir, both its own operations and the activity of other operators in the area have helped de-risk the region, increasing the confidence in exploration and development success.
With funding in place and drilling plans progressing, Elixir Energy appears well-positioned to unlock value from both shallow and deep prospects in ATP 2077. The approach reflects a strong focus on strategic partnerships, infrastructure leverage, and diversified resource targeting for a balanced 2025 exploration program.
