Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) has increased its independently certified 2C contingent gas resources in Queensland's Taroom Trough by 24%, lifting the total resource across its basin-centred gas play portfolio to about 3.5 trillion cubic feet equivalent (TCFe).
The increase follows certification by Sproule ERCE of 662 billion cubic feet equivalent (BCFe) of new net 2C contingent resources in ATP2057, including 633 BCF of gas and 5 million barrels of condensate.
The booking is significant because it expands Elixir's resource base on the western flank of the Taroom Trough, immediately south of Shell's primary area of operations, and supports the company's view that the basin-centred gas play extends across a large part of its acreage position.
The news comes shortly after the company progressed plans to commercialise gas from its northern Taroom Trough acreage, signing an agreement with APA Group to undertake feasibility studies on the most cost-effective export route to the Wallumbilla Gas Hub in Queensland.
Large-scale resource base with significant upside potential
The new resource estimate follows completion of the Teelba 225-kilometre 2D seismic program , where fast-track processing identified Permian stratigraphy consistent with hydrocarbon-bearing reservoirs already penetrated and tested in nearby wells, including Elixir's Lorelle-3/3H.
Importantly, the current ATP2057 resource is confined to the northern part of the permit due to distance from existing well penetrations, leaving more than 50% of the permit as potential upside for future resource or reserve additions through further drilling and appraisal.
Elixir said the next step for ATP2057 would be submission of a Potential Commercial Area application, or retention licence, by permit operator Santos Ltd.
Managing director and CEO Stuart Nicholls said the new certification was "a significant step forward" in the continued maturation of the Taroom Trough portfolio.
"The independently certified Contingent Resources in ATP 2057 further validates the scale and consistency of the basin-centred gas play across our acreage position resulting in a 24% increase to a total of 3.5 TCFe."
He said the Teelba seismic results, regional well control and Elixir's own drilling at Lorelle-3/3H had increased confidence in the continuity and quality of the Permian reservoirs across the western flank.
Nicholls also pointed to additional near-term upside, including ATP2077-D, where Elixir is preparing to stimulate and test the Diona-1 well. Success there could support further resource certification and potentially a reserve booking.
