Elixir Energy Ltd made significant strides during the March 2025 quarter, enhancing its presence in the Taroom Trough with key exploration and commercial milestones. The company successfully executed a farm-in agreement with Santos for permits ATP 2056 and ATP 2057, securing a 50% interest and boosting its net Contingent Resources by 1.2 trillion cubic feet equivalent (TCFe). This positions Elixir as the holder of the largest net acreage in the basin.
Elixir also raised A$7 million through a placement and opened a Share Purchase Plan to raise up to A$2 million more.
A strategic farm-out of part of ATP 2077 will fund drilling at the Diona prospect, while Elixir retains 100% of the remaining blocks.
Post-quarter, Stuart Nicholls, former CEO of Strike Energy, was appointed as Elixir’s new chief executive officer and managing director, replacing founder Neil Young. Nicholls’ appointment signals a sharpened focus on commercialisation and reserve development.
“Elixir has completed a busy quarter that has set the stage for the Company’s growth into a significant operator within the increasingly attractive Taroom Trough in Queensland," Nicholls said.
"I have joined the company at a pivotal time, where Elixir has completed several key exploration activities, generated positive business development outcomes and secured its initial funding. These actions will lay the platform for Elixir to concentrate the Company’s resources and efforts into what I see as one of the most exciting energy plays in Australia.
"As I have previously stated, within Elixir’s greater Taroom Trough acreage, I see excellent geological conditions to demonstrate the commercial potential of its multi-TCF Contingent Resource position, which sits on the doorstep of the Wallumbilla gas hub and associated pipelines, amongst the attractive, deep and long-term energy market in the East Coast, all whilst having underutilised LNG facilities only a short distance away at Gladstone.
"I look forward to articulating my strategic plan in the coming weeks and presenting the path forward to Elixir’s maiden Reserves within the Taroom.”
Below is a breakdown of each major operational area.
Grandis Gas Project: consolidation and funding prospects
During the quarter, Elixir finalised accounting for its Daydream-2 appraisal campaign in ATP 2044, located near the Wallumbilla gas hub. The company expects to receive a A$3.7 million R&D refund in the second half of 2025. Proximity to established gas infrastructure and the nearby Gladstone LNG export facilities underscores the strategic importance of Elixir’s assets in the region.
ATP 2044 and ATP 2077 form the backbone of the Grandis Gas Project, where Elixir continues to assess its Basin Centred Gas (BCG) play and deep dry coal potential. These tenements are central to Elixir’s efforts to build a large-scale, East Coast gas supply.
Farm-in to Santos permits boosts resource base
Elixir executed farm-in agreements for ATP 2056 and ATP 2057, acquiring a 50% interest in both from a Santos subsidiary. In ATP 2056, Elixir will drill a vertical well to 3,100 metres, while in ATP 2057, it will conduct 200 kilometres of 2D seismic.
Independent auditor ERCE certified new Contingent Resources for ATP 2056, raising the total Project Grandis 2C resource to 2.6 TCFe, a 68% increase. With this acquisition, Elixir now controls the largest net acreage in the Taroom Trough, reinforcing its position as a potential major gas supplier to the East Coast.
Diona farm-out enables cost-free exploration
Post-quarter, Elixir farmed out the Diona sub-block of ATP 2077 to XState Resources Ltd, which will fully fund an exploration well targeting a conventional gas prospect near Wallumbilla infrastructure.
The transaction allows Elixir to meet work program commitments, positioning the remaining 100%-owned blocks for regulatory retention applications. The Diona-1 well will test a prospect located only hundreds of metres from existing gas infrastructure, enabling rapid potential commercialisation.
Positive market signals and regional activity
Spot gas prices at Wallumbilla averaged A$13.55 per gigajoule (GJ) during the quarter, peaking above A$16/GJ. The Australian Competition and Consumer Commission forecasted a potential supply shortfall in Q3/25, especially in the southern states, increasing the need for Queensland gas.
Neighbouring operator Omega Oil & Gas reported successful flow testing of the Canyon-1Hz well, and a second high-spec drilling rig was committed to the region. Meanwhile, a major infrastructure investment from US$72 billion fund Stonepeak in IOR underscores growing confidence in the region’s commercial potential.
Mongolia asset exit simplifies portfolio
Elixir has decided to write off the value of its Mongolian assets by June 30, 2025. These assets were previously valued at A$34 million as of December 31, 2024.
The decision is part of Elixir’s plan to concentrate fully on developing its Taroom Trough assets in Australia. It also follows progress made on a potential deal (farmout) involving the Mongolian gas assets, first announced on February 21, 2025.
Due to ongoing difficulties in global financial markets, the potential partner in that farmout has asked Elixir for a one-year option to buy the rest of the Mongolian gas assets for US$10 million. Elixir has agreed to this request.
Financial position and outlook
Elixir closed the quarter with A$7.2 million in cash and an additional A$3.7 million receivable linked to its R&D tax refund. With no debt drawn against this receivable, its effective liquidity position stands at A$10.9 million. Net exploration and operational spending during the quarter was modest at A$0.5 million.
Appendix 5B disclosures indicate funding for approximately 3.8 quarters of activity at current burn rates. Management continues to monitor capital requirements alongside planned drilling and business development efforts.