Elixir Energy

Elixir Energy is an Australian exploration and development company focused on unlocking one of the East Coast's largest undeveloped gas resources—the Taroom Trough in Queensland's Bowen Basin. With a significant resource base of 2.8 trillion cubic feet of gas equivalent (TCFe) in independently certified 2C Contingent Resources, Elixir holds the largest acreage position in this emerging basin-centred gas play, controlling 2,000 km² (500,000 acres) of prospective ground. 

The company's assets are strategically positioned among both domestic gas hub pipelines and LNG export infrastructure, providing multiple monetization pathways. Elixir is currently advancing its flagship projects through appraisal drilling and production testing phases, with plans for near-term commercialization beginning in 2026. 

The company's vision is to establish a low-cost, sustainable gas production operation with a focus on capital efficiency, targeting rapid tie-in to existing pipeline infrastructure. Elixir Energy is listed on the Australian Securities Exchange (ASX: EXR) and is backed by a management team and board with deep experience in building gas companies from exploration through to production.

Elixir Energy offers a compelling investment opportunity with its strategically positioned Taroom Trough assets, which represent the largest confirmed source of gas to address East Coast supply shortfalls. The project benefits from a 2.8 TCFe 2C resource base that is certified and not subject to conventional exploration risk, providing a de-risked foundation for development. The East Coast gas market faces a critical supply-demand imbalance, with southern states showing unfilled demand of 100–400 petajoules annually through 2036 and STTM gas prices averaging $15–30/GJ in recent quarters.

 The Taroom Trough's advantages include its massive scale, onshore location within a well-developed industry infrastructure, and geological maturity. The play is analogized to Canada's Montney formation, where modern drilling techniques increased production from 0.8 BCFd to 8.06 BCFd in a decade, suggesting similar scalability potential. With Shell's recent successes in the Western Taroom Trough validating the geological model, Elixir's acreage surrounding Shell's primary permit offers significant leverage to further discoveries. The company's inherited infrastructure advantage includes proximity to the Waggamba pipeline (only 1,000m from Diona-1) and Wallumbilla Gas Hub, reducing development costs and timelines compared to greenfield projects.

Elixir Energy is led by a highly experienced executive team with a track record of building and financing Australian energy projects. Stuart Nicholls (Managing Director & CEO) joined the board on 14 April 2025 and is a nationally recognised energy-sector leader known for turning around businesses and delivering high-impact projects. He previously led Strike Energy from a small explorer into an ASX200-listed company, driving major growth and commercial outcomes, and has held roles across exploration, commercial and strategy, including experience at Shell as well as military leadership positions.

Justin Ferravant (CFO & Company Secretary) has 25+ years’ experience across energy and resources, is a Certified Practising Accountant and an Australian Institute of Company Directors graduate, and has held senior finance and commercial roles at Origin Energy and Santos. Most recently, he served as CFO and Company Secretary at Strike Energy from 2017, leading project and asset financing for multiple developments.

Kingsley Rudeforth (COO) brings 15+ years of operational and engineering experience, including roles at Strike Energy, Cooper Energy, Ophir Energy and BP, plus project work with Chariot, Energean and ConocoPhillips, supported by engineering and petroleum engineering qualifications.

Elixir Energy is executing a comprehensive growth plan focused on advancing its Taroom Trough assets toward production while emphasizing operational excellence and capital efficiency. The company is moving through critical appraisal and testing phases, targeting near-term commercialization with Diona-1 stimulation and testing in Q1 2026 and Lorelle-3 drilling spudding in January 2026. This development timeline supports a multi-decade production profile, establishing Elixir as a major East Coast gas supplier.

 Environmental stewardship and regulatory compliance are central to Elixir's strategy, with the company pursuing R&D Advance Finding approval covering 48.5% of drill, core, analysis, completion, and testing costs across three financial years. Through active engagement with joint venture partners and regulators, Elixir ensures its development plans meet rigorous technical and environmental standards. While the project already contains substantial 2C resources, the company continues aggressive exploration and appraisal to expand its resource base and extend production potential. 

A key advantage in Elixir's growth plan is its access to existing pipeline infrastructure and the ability to utilize Shell's newly imported Taroom Trough specialized FlexRig for Lorelle-3, significantly reducing capital requirements and improving the project's financial outlook. The company remains open to strategic partnerships and joint ventures to maximize asset value while managing financial risk.

As of November 2025, Elixir Energy is well-positioned financially, with a strong asset base and a strategic focus on advancing its Taroom Trough projects. The company benefits from a market capitalization of $60 million and cash at bank of $9.2 million (unaudited, September 2025), resulting in an enterprise value of $50 million. The company has 1,409,622,137 shares on issue and 218,205,643 options exercisable at 12 cents expiring October 2026. 

The 12-month share price range has been 1.8c to 5.9c, with the new management team appointed in mid-2025. The company's substantial 2.8 TCFe 2C Contingent Resources, independently certified by Sproule ERCE in accordance with 2018 PRMS SPE-PRMS standards, underpin a compelling value proposition. Elixir's resource density is currently the lowest among Taroom Trough players, suggesting significant upside as further operations are completed. 

The company is entitled to claim 48.5% of eligible R&D costs through the Australian government's R&D tax incentive program, providing substantial funding support for its drilling and testing programs. With a favorable economic outlook, strong shareholder support, and a well-funded balance sheet, Elixir is positioned to advance its projects toward commercial production, creating long-term value for investors.

Elixir Energy is on the verge of becoming a significant player in the East Coast gas market, with its Taroom Trough assets positioned as the largest undeveloped gas resource to address the region's supply crisis. With 2.8 TCFe of certified 2C Contingent Resources, substantial acreage surrounding Shell's successful operations, and a commitment to capital-efficient development, Elixir offers a unique investment opportunity in a top-tier jurisdiction. 

The company's strong management team and board with "done this before" experience, infrastructure-advantaged strategy leveraging existing pipelines, and dedication to technical excellence position it for near-term success. As Elixir advances through key milestones—ranging from Diona-1 testing and Lorelle-3 drilling to permitting and potential production tie-in—the company is well-positioned to deliver robust returns, benefiting from favorable gas prices and growing East Coast demand. 

For investors seeking leveraged exposure to a large-scale, de-risked gas resource with multiple near-term catalysts, Elixir Energy presents an attractive opportunity. The company's disciplined approach to development, backed by strong technical validation and strategic partnerships, ensures that Elixir is not only a sound investment today but a responsible operator for the future.