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GRANDIS GAS PROJECT CONTINGENT RESOURCE
The contingent resources, set out below, have been independently certified by international firm ERC Equipoise Pty Ltd (refer below for further details on ERCE) in a report dated 7 February 2025.
1Notes:
1.These are un-risked contingent resources that have not been risked for the chance of development and there is no certainty that it will be economically viable to produce any portion of the contingent resources. These Contingent Resources are classified as “Development Unclarified”.
2.Totals added arithmetically
- Gas equivalency: 1barrel is 6,000 cubic feet of gas
4.The new contingent resources for ATP 2056 have been evaluated by ERCE in a report dated 7 Feb 2025.
5.Deep Dry Coals, Tight Sands Gas and Condensate Contingent Resources were previously evaluated, detailed in separate reports by ERCE and announced to the stock market on 15 January 2025, 27 May 2024 for ATP 2044 and 19 August 2024 for ATP 2077.
- Detailed notes on the background to the preparation of the contingent resources report are set out in Appendix 1.
Elixir has two primary targets in the Grandis Gas Project, namely:
-
- Tight unconventional sandstones.
- Fractured thermally mature coals.
ERCE assigns contingent resources to the tight sandstones of the Permian aged Kianga Formation and Back Creek Group only, as these are the origin of the gas flows in nearby wells. The estimation of the contingent resources is based on the results of previous drilling in the same Taroom Trough play, immediately to the West, North and East of ATP 2044.
The fractured thermal mature coals remain an exploration target and have not been evaluated by ERCE. Establishing flow rates therefrom is a key objective for Daydream-2 and a success case in Elixir Energy’s view could lead to a material increase in contingent resources in the overall licence area.
Elixir Energy’s technical team analysed drilling, logging and test data from these wells. Specific analysis including seismic interpretation, core analysis, wireline petrophysics, chromatographic gas analysis, DFIT, production test analysis and gas sampling have all been incorporated in the resource estimations. ERCE has independently reviewed these interpretations.
The key contingencies of the Grandis Gas Project are the ability to flow gas at sustained commercial rates and the optimum well design. Elixir Energy is planning an appraisal well, Daydream-2 (expected to be drilled in Q4 2023, subject to rig availability), which will be extensively stimulated and tested in order to prove commercial flow rates.
Elixir Energy plans for drilling Daydream-2 are now under way. A Project Manager has been appointed, rig companies, other service sector companies and adjacent operators engaged, and the initial scoping and well design have been initiated. A readily accessible preliminary location for Daydream-2 has been locked in approximately 3 kilometres East of Daydream-1 (which was drilled by BG Group in 2011 and flowed gas at an instantaneous rate of 3.5 MMscfd).
About ERCE
ERCE is one of the largest petroleum Reserves and Resources auditors globally. Examples of current public clients include Harbour Energy, Jadestone Energy, Neptune Energy, Gulf Keystone, Tullow, Lundin Petroleum and Internatinoal Petroelum Corporation (IPC). The firm was formed in 2010, when ERC Energy Resource Consultants Ltd (ERC) and Equipoise Solutions Ltd (Equipoise) merged. ERCE employs geoscientists, engineers, petrophysicists and economists, and has an extensive group of senior associates who bring further regional, technical and petroleum economics expertise to projects. ERCE has offices in the UK, Singapore, Kuala Lumpur, Malaysia and Perth, Australia. The work on the contingent resources has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office, who has over 15 years of experience. He is a member of the Society of Petroleum Engineers and also a member of the Society of Petroleum Evaluation Engineers.
The estimates of contingent resources in the Grandis Gas Project are set out in the table below. The subclass of Contingent Resource (as defined under the PRMS – illustrated in Appendix 1), is “Development Unclarified”.
Santos Farmin –
MATERIAL INCREASE IN CONTINGENT RESOURCES
Farmin deal with Santos provides Elixir with material additional discovered gas resources – recently independently certified by ERCE
Elixir Energy has received independent certification of a contingent resource within ATP 2056. The certification was undertaken by Independent Resource/Reserve Auditor ERCE Australia Pty Ltd (“ERCE”).
Based on the work undertaken by ERCE, the contingent resource for ATP 2056 – and an updated contingent resource for the overall Project Grandis – are summarized in the table to the left. The addition of a 50% stake in ATP 2056 increases the total Project Grandis 2C recoverable gas resources by 1.2 trillion cubic feet equivalent (TCFE), taking Elixirs Tooram Trought TCRE by 68% from 1.7 to just under 3.0 TCFE.
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