East Coast Gas Crisis Looms Without Success at Elixir’s Taroom Trough

A Critical Energy Opportunity on Australia’s East Coast

Elixir Energy has stepped into the spotlight with a detailed update on its dominant position in the Taroom Trough, a basin centred gas play in Queensland that could prove pivotal for Australia’s East Coast energy future. With a certified contingent resource exceeding 2.6 trillion cubic feet equivalent (TCFe), Elixir’s acreage is among the largest in the region, positioning the company at the forefront of efforts to alleviate looming gas supply deficits.

The East Coast gas market faces a challenging outlook, with demand projected to outstrip supply over the next decade. Industry data underscores the urgency of unlocking new multi-TCF resources to prevent an energy crisis and safeguard export industries. Elixir’s Taroom Trough assets are strategically located near the Wallumbilla Gas Hub and major LNG export facilities at Gladstone, offering direct access to high-value markets.

Drawing Inspiration from Canada’s Montney Basin

Elixir draws a compelling analogy between the Taroom Trough and Canada’s Montney Basin, one of North America’s most prolific gas plays. The Montney’s rapid growth, from 0.8 to over 8 billion cubic feet per day in just a decade, highlights the potential scale and productivity of basin centred gas plays. Elixir’s geological data and seismic imaging suggest similar three-phase stratigraphy and reservoir quality, with promising signs of high-amplitude zones that may indicate “sweet spots” for drilling.

Major operators like Shell, who have successfully appraised the Western Taroom Trough, are active nearby, enhancing the prospectivity of Elixir’s permits. The company’s upcoming Lorelle-3 well is poised to test these high-potential zones, with plans to drill to depths around 3,600 meters targeting the Tinowon ‘Dunk’ Sands, a key reservoir analogous to Shell’s successful wells.

Strategic Drilling and Development Plans

Elixir’s near-term strategy includes drilling the Lorelle-3 well and the Diona-1 prospect, the latter carried by Xstate Resources. Diona-1 targets a structurally promising anticlinal trap with a 55% chance of success and is located directly beneath existing gas export infrastructure, potentially accelerating development timelines. These drilling campaigns are critical milestones that will test the commercial viability of the resource and inform future development decisions.

Backing these efforts is a robust financial position, with Elixir reporting $10.4 million in cash and receivables as of the second quarter of 2025. The company’s close collaboration with major players and independent resource certification by ERCE further bolster confidence in the project’s prospects.

Implications for East Coast Energy Security

The Taroom Trough’s development could be a game-changer for Australia’s East Coast energy landscape. With gas prices at hubs like Sydney and Brisbane significantly higher than international benchmarks, unlocking this resource offers both economic and strategic benefits. It promises to support domestic demand, sustain LNG exports, and maintain thousands of jobs tied to the energy sector.

While contingent resources remain subject to drilling success and economic factors, Elixir’s methodical approach, leveraging advanced seismic data, rigorous lab analysis, and strategic partnerships, positions it well to navigate these uncertainties. The next six months, featuring key drilling results, will be pivotal in confirming the Taroom Trough’s potential as a major new source of East Coast gas supply.