Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has improved its financial standing with the receipt of a A$7.9 million cash refund from the Australian Tax Office related to research & development activities at its petroleum exploration licences, ATP 2044 and ATP 2077 — the Grandis Gas Project, in Queensland.
The Research Development (R&D) Tax Incentive Scheme refund is related to eligible R&D activities in the 2024 financial year incurred on the company’s Daydream-2 well.
With this, a short term loan (of around A$6.6 million including interest) that was secured against the R&D tax refund has been repaid in full.
Elixir expects to receive a further refund next year in connection with expenditure incurred in the current financial year.
The company successfully flowed gas from five out of six stimulated zones at Daydream-2, which managing director Neil Young said “ massively exceeded our expectations,” and the company has now moved on to plan the next appraisal well at Project Grandis, Daydream-3.
This well will enable Elixir to focus on further de-risking of the very significant gas resources now established at Project Grandis.
More positive news
News of the R&D refund follows an announcement from Elixir last week that it has booked a new prospective resource of 712 billion cubic feet (2U) in Sub-Block B of its wholly-owned ATP 2077 licence.
Read more: Elixir Energy enhances Taroom Trough gas potential with new resource booking
Today’s announcement also comes less than a month after Elixir executed a MoU with Australian Gas Infrastructure Group (AGIG) — one of the largest gas infrastructure businesses in Australia. The MoU promotes the development of new gas infrastructure for Elixir’s Taroom Trough gas resources.
Read more: Elixir Energy signs Taroom Trough gas infrastructure MoU with AGIG