Elixir Energy Ltd. has secured AU$5 million through a share placement, funding a formal strategic review to unlock value across its massive Taroom Trough gas portfolio in Queensland.
The company will issue 125 million new shares at 4 cents per share, with settlement expected on August 19.
Proceeds from the placement will directly support operational testing across Elixir’s Queensland permits while also funding its strategic review.
Elixir holds the largest landholding in the Taroom Trough, with an independently certified 2C contingent resource of approximately 3.5 trillion cubic feet (Tcf) of gas.
Following successful initial flow results at Lorelle-3H that confirmed the commercial extension of neighbouring plays, the board determined it was the right time to assess corporate options to progress its position.
The review will consider a full range of options for the company’s assets including retaining and self-funding the continued development of its assets or a partial or full farm-out of interests to a financial partner.
Elixir is also considering potential joint ventures or other structures or a combination of each option.
Elixir Energy CEO Stuart Nicholls said growing industry momentum in the region makes this a pivotal moment for the company.
“Industry interest in the play has never been higher and the collective work from ourselves and adjacent operators is advancing quickly towards commercial development,” Nicholls said.
“Elixir holds the largest land position across every known and tested play in the Trough, and that position is attracting significant external attention.
“Now is the right time to assess the full range of paths available to convert this into shareholder value.”
The funds will also be used to complete the downhole pressure monitoring, technical works and observation of the Lorelle-3H well during the 60-day soak period and then the subsequent costs to recommence flowing the well.
The funds will also be allocated to the artificial lift and recommencement of the flow testing at Diona-1 well and conclusion of the potential resource certification process.
