Elixir Energy Ltd., Adelaide, has acquired 100% interest in gas exploration permit in the Taroom Trough in Bowen basin of southeast Queensland. The company purchased Permit ATP 2044 through the acquisition of special purpose vehicle EnergyCapture Pty Ltd. for $500,000 (Aus.) cash plus 20,703,934 Elixir shares worth about $3 million (Aus.).
An overriding royalty of 3% will be paid on hydrocarbon liquids production in the event of a commercial discovery.
ATP 2044 is about 35 km south of the gas hub at Wallumbilla connected by pipelines to Australian east coast and international markets, the latter via the Gladstone LNG plant on Curtis Island.
The permit is prospective for gas and condensate in conventional and unconventional sandstones and fractured coals. Reservoirs are proven in the Taroom Trough where an earlier Daydream-1 well about 3 km west of the permit flowed gas of up to 3.5 MMcfd.
The primary objective reservoirs are in the Permian-age Kianga formation and the Back Creek group.
Potential unrisked prospective 2U resources are estimated at 2,488 bcf and 50 million bbl of condensate within the area.
Elixir plans to drill a well in the permit in 2023, potentially sharing a rig with regional operators, while continuing to explore and develop its Mongolian projects.