Join our daily newsletter At The Bell to receive exclusive market insights
- Elixir Energy (ASX:EXR) executes an information-sharing agreement with Origin (ASX:ORG) concerning the upcoming Daydream-2 well within its Grandis gas project in Queensland
- Origin is currently acquiring a GHG license that encompasses Elixir’s ATP 2044
- The agreement encompasses that Elixir facilitates the collection of data for Origin, and in return, Origin compensates Elixir for these services by covering all additional expenses with an additional payment of $1 million
- Origin also has the option to enter into similar arrangements in up to five future wells Elixir will drill in ATP 2044
- EXR last traded at 6.8 cents
Elixir Energy (ASX:EXR) has signed an information-sharing agreement with Origin (ASX:ORG) regarding the upcoming Daydream-2 well within its Grandis gas project in Queensland.
Origin is currently in the process of acquiring a Greenhouse Gas (GHG) license that encompasses Elixir’s ATP 2044.
This license will bolster Origin’s plans to explore carbon capture and storage (CCS) initiatives in the specific region.
“This innovative deal provides a great win/win/win for Elixir, Origin and the State of Queensland, in that one well will provide sub-surface data that would otherwise require two wells,” EXR Managing Director Neil Young said.
“It is Elixir’s firm view that the co-location of natural gas and CCS forming what Wood Mackenzie has dubbed “Energy Super Basins” will increasingly form key areas of interest for global energy investors.”
The agreement between the two companies stipulates that Elixir will facilitate the collection of data for Origin, and in return, Origin will compensate Elixir for these services by covering all additional expenses incurred during the data-gathering process, along with an additional payment of $1 million to Elixir.
Origin also has the option to enter into similar arrangements in up to five future wells Elixir will drill in ATP 2044.
EXR last traded at 6.8 cents.
