Elixir Energy Advances Warkon Pilot with Pipeline and Plant Feasibility Studies

Pipeline Feasibility Highlights Taroom Trough Advantage

Elixir Energy (ASX:EXR) has revealed promising feasibility outcomes for its Warkon Pilot, a gas and condensate production project in Queensland’s Taroom Trough. APA Group’s subsidiary, APT Management Services, completed a detailed study identifying two pipeline routes, each around 52-53 km, to connect the pilot directly to the Wallumbilla Gas Hub (WGH). This hub is a critical nexus for Queensland’s gas market, linking nine major pipelines and facilitating access to both domestic and LNG export markets.

The study emphasised the economic advantage of a direct northeast pipeline to WGH, with capacity charges ranging from $0.35 to $1.32 per gigajoule depending on throughput between 150 and 40 terajoules per day. Notably, these charges fall by 74% when moving from minimum to full utilisation, underscoring the cost efficiency available at scale. APA’s work also covered custody transfer infrastructure including gas chromatography, metering, and infield compression, all essential for reliable gas sales.

Upstream Plant Design Progressing with Industry Expertise

On the processing front, Elixir has appointed Simpliphi Pty Ltd to lead the Concept Select and engineering design of the upstream plant. This facility will handle condensate separation, dehydration, and temperature control to meet pipeline specifications before gas reaches the WGH. Simpliphi brings recent hands-on experience with similar projects, aiming to deliver a concept design, risk assessment, preliminary cost estimate, and execution plan within the current quarter.

These engineering advances are critical as Elixir evaluates the commercial viability of the Warkon Pilot. The company has flagged upcoming flow testing at the Lorelle-3H well, scheduled to commence on 1 October 2026, which will provide further data to support reserves booking and production planning. This aligns with Elixir’s broader strategy to convert its substantial contingent gas resources into revenue-generating assets.

Collaboration and Commercial Pathways in Focus

Elixir sees scope for multi-user and shared infrastructure among Taroom Trough operators, potentially lowering capital costs and accelerating development timelines. The feasibility work’s tariff sensitivity to throughput highlights the financial benefits of collaboration. The company plans to engage with neighbouring operators and present these opportunities to the Queensland Government’s Taroom Trough Development Forum, signalling a cooperative approach to regional gas development.

Managing Director Stuart Nicholls emphasised the strategic advantage of Elixir’s proximity to the WGH, noting that access to existing infrastructure could reduce capital hurdles and speed the path to commercial gas sales. This update follows recent capital injections and resource upgrades that have strengthened Elixir’s position in the Taroom Trough, a basin with an independently certified contingent gas resource of approximately 3.5 trillion cubic feet.