Santos Farmin
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OVERVIEW
Elixir Energy’s executed two Farmout Agreements with a wholly owned subsidiary of Santos Ltd (“Santos”) over two 100% owned exploration licences in the Taroom Trough – ATP 2056 and ATP 2057 in February 2025.
Under the two separate Farmin Agreements Elixir Enrgy will earn a 50% working interests (WI) in ATP 2056 and ATP 2057. The map to the right illustrates where these licences are located in the Taroom Trough.
The acreage acquired contains an extension of the basin centred gas (BCG) play that the Company has proven in ATP 2044. Additionally, it contains the more updip targets in this play that have been the subject of a very active drilling program in 2024 by another Operator. The new blocks have obvious synergies with ATPs 2044 and 2077 and are a strong strategic addition to Elixir’s Grandis Project.
Elixir will fund and operate the farmin programs for each licence, which in the case of ATP 2056 is the drilling of a vertical well to 3,100 metres and for ATP 2057 is the acquisition of 200 kilometres of 2D seismic. These programs will meet the exploration commitments for the two licences. Operatorship will revert to Santos thereafter.
EXCELLENT SYNERGIES
The Toroom Trough provides excellent synergies with ATPs 2044 & 2077 – a strategic addition to the Grandis Project.
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.
TECHNICAL
Appraisal Well planned in ATP 2056 IN 2024 – Lorelle-3
Accessing the BCG play in the Taroom some 900 metres shallower than Daydream-2
- Appraising the BCG play in an updip position
- The well will also target the Dunk Sand, which is clearly mapped into the block
- The Dunk Sand was the target of QGC’s (Shell’s) 3 horizontal well drilling program in 2024
- Planning for an initial vertical appraisal well to evaluate all targets, but the well design will allow for a horizontal lateral into the Dunk Sand
- The evaluation date of the ERCE Contingent Resources is 07/02/25.
- Elixir’s working interest share of ATP 2056 is 50%. An ATP is an Authority To Prospect, and post a regulatory updating process, the assets will be held by a wholly owned subsidiary of Elixir Energy.
- The Contingent Resources are considered to be in the “development unclarified” category as defined by the 2018 PRMS SPE-PRMS standards. As such it is premature at this point to identify what contingencies need to be addressed to convert the resources into reserves.
- Per Listing Rule 5.33.5, the land area and the number of wells for which the estimates of contingent resources are 730 km2 and 523 respectively (for the mid/best case). The Deep Dry Coals are considered an add-on to the existing tight sand gas development and would not require additional drilling. The production method will be by stimulated vertical, deviated and horizontal wells. As the gas is “dry” and 93% Methane with only 1% CO2, minimal processing will be required at the wellsite, with dehydration and separation likely to be required to meet pipeline specifications. Elixir is currently evaluating 1. new well locations; and 2. offtake and infrastructure negotiations. In addition to EXR’s own plans, the work undertaken by its neighbours also serves to assess and improve the chances of development.
- BCF means Billions of Standard Cubic Feet.
- 6. MMbbls means Millions of Stock Tank Barrels.
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