Elixir Energy buys gas asset in Queensland
Elixir Energy has purchased a 100% interest in petroleum exploration permit ATP 2044 in Queensland via the acquisition of special purpose vehicle EnergyCapture, it said on August 29.
The company said given its strong fiscal position, no capital raising is anticipated in connection with this transaction. Elixir will pay A$500,000 ($342,972) in cash and issue A$3mn worth of new shares to the seller. One-third of shares will be escrowed for nine months, one-third for 18 months and one-third will be unencumbered.
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“Elixir considers this asset compliments the skills of its board and Australian team and provides its shareholders with an opportunity to profit from the rapidly changing international and local gas market dynamics,” it said. “The company’s existing natural gas and hydrogen projects in Mongolia, which will continue to be vigorously prosecuted in parallel with this new asset, also benefit from such factors as increasing customer emphasis on security of supply.”
ATP 2044 is prospective for gas and condensate trapped in conventional and unconventional sandstones and fractured coals. These reservoirs are proven in the Taroom Trough, where the Daydream-1 well, about 3 km west of the permit edge, flowed gas at rates of up to 3.5mn ft3/day, the company said. Elixir aims to drill a well in ATP 2044 in 2023.
“The company understands that other operators in the Taroom Trough may conduct drilling programmes in a similar time-frame and plans to engage with them immediately to coordinate matters such as potentially sharing the same rig. The outcomes of these discussions will determine a more specific time-frame for the company’s drilling,” Elixir said.