Elixir Energy (ASX:EXR) Expands Taroom Trough Project with Farmout Agreements and Equity Raise
Project Expansion
Elixir Energy Limited has expanded its Grandis Project in the Taroom Trough, Queensland, by executing two farmout agreements with a wholly owned subsidiary of Santos Ltd. This secures Elixir a 50% working interest in exploration licences ATP 2056 and ATP 2057.
Contingent Resources
The company has booked independently certified 2C contingent resources of 1.2 trillion cubic feet equivalent (TCFE) from ATP 2056, bringing the total contingent resources for Project Grandis to 3.0 TCFE.
Equity Raising
Elixir Energy is undertaking an equity capital raising of up to $9 million to fund the farmout work. This includes a $7 million placement and up to $2 million from a shareholder placement, aimed at supporting drilling and seismic acquisition activities.
Executive Comments
Managing Director Neil Young stated: “This highly accretive deal is a fantastic one for our shareholders. It adds significantly to our already very material contingent and prospective resources in the Taroom Trough, such that, even after the associated capital raising, the contingent resources owned on a per share basis have increased substantially. Our overall team has great experience in working for and with Santos, who we greatly respect as Australia’s premier onshore Operator, and we look forward to expanding those long term relationships.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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