Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has added new Taroom Trough acreage to its southeast Queensland gas strategy after being appointed by the Queensland Government as preferred tenderer for a new exploration area adjacent to its Grandis Gas Project.
The PLR2023-1-7 licence area covers 526 square kilometres and is immediately adjacent to the company’s Project Grandis in the Taroom Trough. It is prospective for both deep and shallow gas.
“Highly complementary”
Elixir’s managing director Neil Young said: “Naturally we are pleased to be recognised by the Queensland Government as the preferred tenderer for a new licence area which is highly complementary to our existing Grandis Gas Project position.
"That recognition in part at least acknowledges the good work undertaken by our team since we have entered Queensland two years ago.”
Location map of PLR2023-1-7.
Three areas
Although just one licence, PLR2023-1-7 is divided into three separate geographical areas.
The North Eastern areas are in the Taroom Trough and are prospective for the same deep gas plays as encountered in Project Grandis.
These new areas cover 152 square kilometres and represent a 14% increase of Elixir’s acreage within the Taroom Trough, which to date has a 2C contingent resource booking of 1,297 Bcf.
The larger South-Western area, which covers 374 square kilometres is prospective for shallow and deep gas targets.
What comes next?
Technical studies have begun on all of the areas of the licence to address issues such as the potential addition of contingent and prospective resources, drill target(s) and potential partners once the licence is formally granted.
Elixir will now proceed to obtain an Environmental Authority (EA) and complete any required Native Title process before being granted the final Authority to Prospect (ATP). This licence will not be subject to any domestic gas reservation.
The company will own a 100% working interest in the ATP and will be the operator.