Elixir Energy Launches Strategic Review with Fresh Placement Funding

Elixir Energy (ASX: EXR) has secured firm commitments for a $5 million placement that will fund further Taroom Trough well testing and launch a strategic review of options for its Queensland gas portfolio.

The review follows first-phase flow testing at Lorelle-3H, which Elixir considers supports modelling of a potentially commercially viable development within ATP2056 after earlier exploration and appraisal confirmed the extension of Shell’s primary plays into its permits.

Proceeds will also support a 60-day soak period and second phase of flow testing at Lorelle-3H, along with artificial lift and renewed flow testing at Diona-1 subject to joint venture approval.

Elixir is seeking to determine the optimal corporate and commercial pathway for its broader acreage position while continuing technical work across a resource base of approximately 3.5 trillion cubic feet of independently certified 2C contingent gas resources.

Elixir is the largest acreage holder in the Taroom Trough and holds interests across every known and tested play in the basin.

Strategic Options Open Up

The strategic review will examine alternatives ranging from retaining and self-funding some or all assets through to partial or full farm-outs, strategic partnerships, JV structures, and other corporate structures.

Elixir wants the process to improve risk-adjusted shareholder returns, accelerate appraisal and potential commercialisation of its gas position, and potentially bring in additional capital, technical capability, or offtake relationships.

“This placement strengthens our balance sheet at a pivotal time for the Taroom Trough, where industry interest in the play has never been higher and the collective work from ourselves and adjacent operators is advancing quickly towards commercial development,” managing director and chief executive officer Stuart 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.”

Placement Funds Near-Term Testing

The placement will issue 125 million new fully paid ordinary shares at $0.04 each to new and existing institutional and sophisticated investors, representing a 20% discount to the $0.05 closing price on 7 August.

Settlement is expected on 19 August with allotment scheduled for 20 August, while broker fees are 6% plus goods and services tax payable in cash.

At Lorelle-3H, the funding will cover downhole pressure monitoring, technical work, and observation during the soak period before flow recommences, as well as subsequent data analysis and engagement of independent reserve certifiers.

Funding for Diona-1 is intended to support artificial lift, renewed flow testing, and completion of the potential resource certification process, while working capital will cover execution of the strategic review.