Elixir Energy Ltd has unveiled a refreshed three-phase strategy which aims to unlock the value of its large-scale acreage in Queensland’s Taroom Trough, following a comprehensive review by its new CEO Stuart Nicholls.
Leveraging dominant position
The company plans to leverage a dominant position in a rapidly maturing basin, proximity to infrastructure and exposure to rising East Coast gas prices.
The plan begins with securing long-term tenure over 100% of its acreage, which spans more than 2,000 square kilometres and surrounds Shell’s core investment area.
Elixir holds 2.6 trillion cubic feet equivalent (TCFe) of 2C Contingent Resources, independently certified following the Daydream-2 well, which flowed over 2.8 million standard cubic feet per day (mmscfd) post-stimulation.
Subsequent phases will target reserve certification and early production, with the goal of converting over 150 billion cubic feet (BCF) of 2C resources into 2P reserves by the end of 2027.
Elixir’s strategy uses a “fast-follower” model, benefiting from significant investment by Shell and others to accelerate progress at reduced capital intensity.
Phase 1 activities are fully funded and include drilling the Diona-1 and Lorelle-3 wells. Diona-1 is fully carried by partner Xstate Resources and targets conventional gas directly beneath export infrastructure.
Lorelle-3 will appraise the Dunk Sands, Shell’s primary reservoir target, with potential for horizontal development.
In Phase 2, Elixir will drill Daydream-3 in ATP 2077 Block-A, which already holds 184 BCFe of 2C Resources.
Shell is next door
A successful vertical well will be followed by a horizontal sidetrack and production testing, supported by 3D seismic to be acquired by Shell over the block.
Phase 3 will pursue early production opportunities through aggregation of drilled wells and collaboration with adjacent operators to access shared infrastructure.
Elixir is also implementing an operational reset under its new leadership, targeting lower overheads, greater capital efficiency and alternative funding pathways – all this in the hope of positioning itself as a key player in one of Australia’s most prospective new energy provinces.