Elixir Energy Raises $16.6M to Fund Expanded Drilling and Testing in Taroom Trough

Strategic Capital Injection

Elixir Energy Limited has announced a significant capital raise of $16.6 million, primarily driven by Omega Oil and Gas Limited’s investment of up to $14.6 million. This two-tranche placement secures Omega a 19.43% stake in Elixir, underscoring the confidence of a fellow Taroom Trough operator in Elixir’s substantial acreage and resource potential. The capital raise also includes a conditional $2 million tranche from Nero Resource Fund, a respected institutional investor in early-stage resource plays.

The infusion of funds is a critical enabler for Elixir’s transition into Phase-2 of its Strategic Plan, focusing on converting contingent resources into defined reserves through advanced appraisal activities. With a pro-forma cash position of around $25 million plus R&D advance funding, Elixir is well-positioned to meet its work commitments and accelerate development.

Advancing the Taroom Trough Project

The capital raise directly supports key operational milestones, notably the Lorelle-3 appraisal well campaign scheduled for January 2026. This campaign now includes a horizontal sidetrack of at least 1,000 meters, multi-stage fracture stimulation, and production testing designed to demonstrate commercial flow rates. Success here could convert a significant portion of Elixir’s 2C contingent gas resources into reserves, a crucial step toward commercialisation.

Additionally, Elixir plans to conduct fracture stimulation and production testing at the Diona-1 well, with the potential to tie into existing pipeline infrastructure and generate early cash flow. The company will also undertake a 200km 2D seismic program at Teelba to meet permit obligations and explore further reservoir potential.

Strategic Partnership and Governance

Omega’s investment goes beyond capital, granting it the right to nominate two directors to Elixir’s board, subject to maintaining a minimum 15% voting stake. This move signals a deepening collaboration, with a Technical Committee established to facilitate knowledge sharing and accelerate technical learnings. Omega’s involvement is expected to enhance Elixir’s operational execution and strategic decision-making as it advances the largest undeveloped East Coast gas resource in Australia.

Elixir’s Managing Director Stuart Nicholls highlighted the significance of Omega’s support, describing it as a validation of Elixir’s asset quality and a catalyst for unlocking value in the Taroom Trough. The partnership aims to address the growing energy demands on Australia’s east coast and support Queensland’s export industries for decades.

Looking Ahead

The capital raising timetable anticipates settlement of the first tranche by early December 2025, with shareholder approval sought for the second tranche in January 2026. Elixir will host a webinar shortly to discuss the capital raise and upcoming operational plans, providing investors with further insights into the company’s growth trajectory.

While the capital raise significantly de-risks Elixir’s near-term development plans, the ultimate commercial viability hinges on appraisal well results and subsequent reserve certification. Market participants will be watching closely as Elixir moves from resource definition toward production and cash flow generation.