Elixir Energy has independently certified an additional 189 BCFe of 2C contingent gas resources in Queensland’s Taroom Trough, lifting its total certified resources to approximately 2.8 TCFe. This milestone underscores the company’s expanding footprint in a key Australian gas basin with promising commercial potential.
- 189 BCFe new 2C contingent gas resources certified in ATP2077 Block-B
- Total 2C contingent gas resources in Taroom Trough now ~2.8 TCFe
- 8% increase in certified gas resources for Elixir Energy
- Plans for seismic surveys and resource certification in ATP2057
- Next steps include Potential Commercial Area application and future drilling
Elixir Energy Expands Gas Resource Base
Elixir Energy Limited (ASX, EXR) has announced a significant upgrade to its contingent gas resources in Queensland’s Taroom Trough, a key part of the Bowen Basin. Independent auditor Sproule ERCE has certified an additional 189 billion cubic feet equivalent (BCFe) of 2C contingent gas resources in the ATP2077 Block-B, which Elixir wholly owns. This addition raises the company’s total certified 2C contingent gas resources in the Taroom Trough Basin Centred Gas Play to approximately 2.8 trillion cubic feet equivalent (TCFe), marking an 8% increase.
Strategic Location and Geological Confidence
ATP2077 Block-B is strategically positioned on the western flank of the Taroom Trough, about 10 kilometres from the ‘Taroom Trough Edge’; a location geologically analogous to Shell’s primary drilling area. The block benefits from proximity to sedimentary sources from the west and southwest, enhancing reservoir potential. Historical wells, Kinkabilla-1 and Inglestone-1, drilled decades ago, have been re-evaluated using modern digitization and petrophysical analysis, enabling Sproule ERCE to confidently estimate the new contingent resources.
Next Steps Toward Commercialisation
Elixir plans to submit a Potential Commercial Area application for ATP2077 Block-B as part of Phase-1 of its strategic development plan. This would be followed by the drilling of Inglestone-2, aimed at converting contingent resources into reserves and advancing toward production. Additionally, the company anticipates further resource certification in its 50% interest in ATP2057, adjacent to Shell’s acreage and Elixir’s Block-B, pending a planned 200-kilometre 2D seismic survey scheduled for early 2026.
Market Implications and Industry Context
Managing Director Stuart Nicholls highlighted the significance of the resource upgrade, noting the Taroom Trough’s potential to address declining east coast domestic gas supplies and support Queensland’s liquefied natural gas (LNG) export industry. The scale of Elixir’s resource base positions the company as a notable player in the basin-centred gas play, with implications for both domestic energy security and export markets.
Caveats and Forward-Looking Considerations
While the contingent resources are independently certified, they remain classified as “development unclarified,” meaning there is no certainty of economic viability at this stage. The company’s future success will depend on seismic survey results, regulatory approvals, and the ability to convert resources into commercially producible reserves. Nonetheless, this announcement marks a clear step forward in Elixir’s exploration and development journey in a strategically important Australian gas basin.
Bottom Line?
Elixir’s resource upgrade cements its Taroom Trough position but hinges on upcoming seismic and drilling milestones to unlock commercial value.
Questions in the middle?
- How will the upcoming seismic survey in ATP2057 influence resource certification and development timelines?
- What are the key technical and regulatory hurdles for converting contingent resources into reserves in the Taroom Trough?
- How might Elixir’s expanding resource base impact east coast Australian gas supply and LNG export dynamics?