How Elixir Energy’s 15-Year License Could Unlock 1,362 BCFe in Taroom Trough

Elixir Energy Secures Strategic Retention License

Elixir Energy Limited (ASX, EXR) has achieved a significant milestone by securing a renewal of its ATP2044 permit along with a Potential Commercial Area (PCA356) retention license covering 1,058 square kilometres in Queensland’s Taroom Trough. This retention license, granted for 15 years, allows Elixir to maintain full control over its substantial acreage without the need for partial relinquishment, a key objective outlined in the company’s strategic plan earlier this year.

Substantial Gas Resources Confirmed

The PCA356 area contains an independently certified 2C Contingent Gas Resource of 1,362 billion cubic feet equivalent (BCFe), a figure derived from the successful drilling and testing of the Daydream-2 exploration well in 2024. This resource base underpins Elixir’s confidence in the commercial potential of its Taroom Trough assets, which are geologically analogous to Canada’s prolific Montney Formation.

Strategic Positioning in a Growing Gas Hub

Elixir’s Taroom Trough acreage is strategically located near key infrastructure, including the Wallumbilla Gas Hub, multiple gas pipelines, and LNG export facilities. This proximity enhances the commercial viability of the resources and positions Elixir alongside major industry players such as Shell, Santos, and Omega, who are also active in the region. The company’s Managing Director Stuart Nicholls highlighted that the retention license aligns with their goal to participate in the joint de-risking and commercialisation of this emerging gas play over the next decade and a half.

Looking Ahead, Exploration and Development Plans

With the retention license secured, Elixir is poised to advance its exploration and appraisal activities, including the recently drilled Lorelle-3 well and the acquisition of new seismic data at Teelba. These efforts aim to further delineate the resource base and reduce development risks. The company’s focus remains on unlocking the value of its approximately 2.8 trillion cubic feet of certified contingent gas resources, which could play a pivotal role in Queensland’s onshore gas industry.

Balancing Opportunity and Uncertainty

While the granting of PCA356 is a positive development, Elixir’s forward-looking statements caution investors about the inherent uncertainties in exploration and resource development. Market conditions, regulatory environments, and technical challenges will all influence the path to commercialisation. Nonetheless, the retention license provides a solid foundation for Elixir to pursue its long-term ambitions in a highly prospective basin.