Elixir Energy Raises $16.6M to Fast-Track Queensland Gas Development

Strategic Investment Validates Taroom Trough Potential

Elixir Energy Limited has announced a significant capital raise of $16.6 million, anchored by a $14.6 million investment from Omega Oil and Gas Limited. This transaction, structured as a two-tranche placement, grants Omega a substantial 19.43% equity stake in Elixir. Complementing this, the Nero Resource Fund has committed an additional $2 million in a conditional tranche, underscoring growing institutional confidence in Elixir’s assets.

The investment is more than just a capital injection; it represents a strong endorsement of Elixir’s extensive acreage in Queensland’s Taroom Trough, a region geologically akin to Canada’s prolific Montney Formation. Omega, already a key operator in the area, brings not only funds but also strategic collaboration opportunities, promising to accelerate Elixir’s technical progress.

Unlocking Phase-2 – From Contingent Resources to Reserves

With this fresh capital, Elixir is poised to transition into Phase-2 of its Strategic Plan, focusing on converting its large contingent gas resources into certified reserves. Central to this effort is the upcoming Lorelle-3 appraisal well campaign, scheduled to commence in January 2026. The campaign will feature a vertical pilot well, expanded logging, and notably, a horizontal sidetrack of at least 1,000 meters with multi-stage fracture stimulation and production testing.

Success at Lorelle-3 could be transformative, potentially converting a portion of the 1,057 billion cubic feet equivalent (BCFe) of net 2C contingent resources in ATP2056 into reserves. Additionally, the Diona-1 well will undergo fracture stimulation and production testing, with plans to tie it into existing pipeline infrastructure to generate early cash flow if results prove commercial.

Financial Position and Governance Implications

Post-raise, Elixir’s pro-forma cash position is estimated at approximately $25 million, supplemented by an R&D advance funding arrangement. This robust financial footing enables the company to meet its work commitments and pursue accelerated development activities without immediate funding concerns.

Omega’s investment also brings governance changes, with rights to nominate two directors to Elixir’s board, subject to maintaining a minimum 15% voting power. The establishment of a Technical Committee involving Omega and Elixir aims to foster knowledge sharing and expedite technical learnings, a critical factor in advancing the largest undeveloped East Coast gas resource.

Looking Ahead – Market and Operational Milestones

The capital raise and strategic partnership position Elixir to fast-track its appraisal and development timeline by over 12 months. Key upcoming milestones include the shareholder meeting to approve tranche 2 placements in January 2026, the commencement of the Lorelle-3 drilling campaign, and subsequent production testing phases. These events will be closely watched by investors eager to see if Elixir can demonstrate commercial flow rates and convert its contingent resources into economically viable reserves.

Elixir’s Managing Director Stuart Nicholls highlighted the significance of this moment, emphasizing the potential to supply Queensland’s energy market and support its export industries for decades. The collaboration with Omega and Nero Resource Fund signals a new chapter of growth and validation for Elixir’s Taroom Trough assets.