ASX-listed Mongolian gas explorer Elixir Energy (ASX:EXR) on Thursday provided the market with a wrap up of its yearly activities at the company’s flagship Nomgon IX Coal Bed Methane (CBM) natural gas exploration project.
The recap of events saw Elixir Energy’s share price climb 6.5% to 16.5c in lunchtime trades.
Of foremost interest to investors is likely the fact that Elixir Energy is the first ASX smallcap to successfully flow gas in the jurisdiction.
“At the same time as making great progress in our foundation Nomgon CBM asset we have grown two new assets of enormous and uncorrelated potential,” Elixir chief Neil Young said.
Those two other assets are a domestic onshore gas exploration permit in Queensland, and, a separate Green Hydrogen project, Gobi H2, to be located in Mongolia.
The Gobi H2 project has landed on the radar of Japan’s SoftBank, the two companies executed a non-binding collaborative Memorandum of Understanding (MOU) back in June this year.
In July, Elixir highlighted it was monitoring Chinese government hydrogen policy, alongside its work with the Japanese giant’s energy division, SoftBank Energy Corporation.
Meanwhile, Elixir Energy moved into Queensland in August year at its Grandis Gas Project attached to licence ATP2044, situated in a strategic dream location just south of North QLD’s main gas distribution network, Wallumbilla Hub.
Now that Elixir is also an Australian gas explorer, management revealed on Thursday its ongoing work to advocate for a mitigation of the Albanese government’s gas price cap.
Young made clear his views on the cap clear, reflecting the age-old adage that the answer to high prices, is higher prices.
“Government interventions in markets are never welcomed and indeed higher prices in gas markets in recent times were a sign that those markets were in fact working. Higher prices induce new supplies which then re-balance prices downwards,” Young said.
“The hurried process by which the Government introduced this price control mechanism…demonstrated the Government understands the shortcomings.”
“Elixir is working with various industry participants to make it clearer to the Government that price controls could have negative political as well as commercial consequences.”
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