Elixir posts gas reserves estimate at its QLD Taroom Trough gas play near Wallumbilla Hub

Elixir Energy (ASX:EXR) shares are enjoying relief from a broad red day in the second hour of trade. 

The company’s publication of an initial contingent 2C (read: best estimate) gas reserve, of 395bcf of natural gas, is what’s lifting shareholder sentiment. 

While normally focused on its own Mongolian operations, Elixir has recently begun developing a landholding in the onshore QLD Taroom Trough. Worth noting is that Shell has formerly been active in the Taroom. 

In fact, it still is; holding onto permits relatively next door. For that matter, so does Santos (ASX:STO). 

Elixir will construct an appraisal well, Daydream-2, in the second half of 2023. That well’s name is a reference to the Daydream-1 well Shell completed in the not too distant past. 

Elixir is now dubbing its Taroom Trough play the Grandis Gas Project. 

Ideal proximity to Wallumbilla terminal

The Trough itself forms part of an well known oil and gas region nearby the Wallumbilla Hub, which connects to pipelines that run west into the NT and south all along the continent’s east coast. 

Plausibly, if Elixir is able to extract gas suitable for sales nearby, it is set to benefit from being adjacent to the main distribution terminal for onshore natural gas. 

Wallumbilla also connects to eastward pipelines that run to export ports. 

Connected to global gas markets

“Our technical team has done a superb job in working with ERCE to book a very material initial contingent resource for our Grandis Gas Project,” Elixir MD Neil Young said. 

“This asset is fantastically well placed, adjacent to existing gas infrastructure that connects to domestic gas markets and via the Gladstone LNG plants, to global gas markets.”

“We anticipate drilling the Daydream-2 appraisal well in the latter part of next year.”

Elixir Energy's three month charts

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