- Elixir Energy (EXR) buys a 100 per cent interest in petroleum exploration permit ATP 2044 in Queensland via the acquisition of EnergyCapture
- ATP 2044 is prospective for gas and condensate in conventional and unconventional sandstones and fractured coals, and Elixir expects to begin drilling in 2023
- An estimated prospective resource outlined high 3U total recoverable gas of 6811 billion cubic feet and high 3U total associated condensate of 272 million barrels of oil
- The company paid $500,000 for the permit as well and issued more than 20.7 million Elixir shares
- Elixir is up 1.79 per cent on the market and trading at 14.3 cents at 11:50 am AEST
Elixir Energy (EXR) has purchased a 100 per cent interest in petroleum exploration permit ATP 2044 in Queensland via the acquisition of EnergyCapture.
ATP 2044 is located in the Taroom Trough which lies around 35 kilometres south of one of Australia’s main gas hubs at Wallumbilla.
It is prospective for gas and condensate in conventional and unconventional sandstones and fractured coals.
An estimate of the prospective resource was completed by Elixir Chief Geoscientist Greg Channon who outlined high 3U total recoverable gas of 6811 billion cubic feet and high 3U total associated condensate of 272 million barrels of oil.
Elixir expects to drill a well in ATP 2044 in 2023.
Consideration for the purchase was $500,000 as well as the issue of 20,703,934 Elixir shares with one-third escrowed for nine months, one-third escrowed for 18 months and one-third unencumbered.
Further, it also consists of an overriding 3 per cent royalty on the production of hydrocarbon liquids.
Managing Director Neil Young said Elixir Energy is pleased to have fully acquired a QLD-based asset with “very attractive” characteristics in the current global and local energy market environments.
“The East Coast gas market is also facing material gas shortages as identified recently by the ACCC and the new asset accordingly has great optionality in potentially supplying either or both markets,” Mr Young said.
“The favourably located asset sits adjacent to permits operated by both Shell and Santos and we will explore potential synergies to target this exciting play.”
Shares in Elixir were up 1.79 per cent on the market and were trading at 14.3 cents at 11:50 am AEST.