Elixir Energy Expands Australian Gas Project with New Licence Award

Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has taken a significant step towards expanding its gas operations in Queensland, Australia, with the formal award of a 100% working interest in ATP 2077. This new licence, which boasts independently certified 2C resources of 173 billion cubic feet, adds a substantial boost to the company's existing Project Grandis.

Project Grandis Expansion

The acquisition of ATP 2077 represents a strategic move for Elixir, adding to its existing ATP 2044 licence in the Taroom Trough region. The new licence, awarded by the Queensland Government, is strategically located adjacent to ATP 2044, offering the potential to unlock significant gas resources. The award of ATP 2077 comes on the heels of Elixir being appointed as Preferred Tenderer for the exploration area in June 2024. This new licence, with an initial term of six years, is free from any government domestic market restrictions.

Resource Confirmation and Future Plans

To validate the resource potential of ATP 2077, Elixir engaged international firm ERC Equipoise Pty Ltd (ERCE) to conduct an independent resource certification. The results were impressive, revealing 2C resources of 173 billion cubic feet for Sub-block A of the licence. This area, situated in close proximity to ATP 2044, shares similar geology. In addition to the gas resources, the ERCE certification also confirmed 2C condensate of 1.8 MMbbls (Millions of Stock Tank Barrels) within ATP 2077, contributing to a 17% increase in total Project Grandis 2C condensate to 12.6 MMbbls.

Next Steps and the Road Ahead

While the focus has been on Sub-block A, Elixir's technical team is currently evaluating the resource potential in Sub-blocks B and C. Sub-block B, also situated within the Taroom Trough, will be assessed for prospective resources at a later stage due to its distance from Project Grandis. Sub-block C, located outside the Taroom Trough, holds promise for shallow drilling targets due to its proximity to existing gas infrastructure, including the dormant Silver Springs gas storage asset.

Unlocking the Potential of Project Grandis

The ultimate success of Project Grandis hinges on demonstrating commercial flow rates and establishing a viable development plan. While Elixir has achieved a flow rate of 2.5 million cubic feet per day from the lower-most Lorelle Sandstone, further testing of the upper zones is still required. The recent award of ATP 2077 significantly enhances the resource base of Project Grandis, bolstering its prospects for future development and production.

A Strategic Acquisition with Potential

Elixir Energy's managing director Neil Young expressed the strategic importance of the ATP 2077 award, highlighting that it was a key reason for bidding on this acreage. He emphasizes that the company's expertise gained from ATP 2044 played a crucial role in identifying the valuable gas resources in ATP 2077 at minimal cost.

Elixir Energy's expansion into ATP 2077 marks a significant milestone for the company, positioning it for further growth and exploration in the Australian gas sector. With the resources secured and a clear roadmap for development, Elixir is well-positioned to tap into the potential of Project Grandis and contribute to the ongoing energy needs of the region.