Elixir Energy (ASX:EXR) secures $16.6 million capital raising as Omega takes a 19.4% stake

Elixir Energy has strengthened its strategic and financial position following the announcement of a $16.6 million capital raising supported by Omega Oil and Gas and the Nero Resource Fund.

The investment marks a major advancement in the Company’s transition into Phase 2 of its Strategic Plan, bringing forward key reserve definition activities by more than twelve months and enabling the commencement of the expanded Lorelle 3 appraisal program in January 2026.

Omega’s two tranche placement for a 19.43% holding underscores the market’s recognition of the quality, scale and infrastructure advantage of Elixir’s substantial Taroom Trough acreage, which contains independently certified two C contingent gas resources of approximately two point eight TCF.

To further clarify the strategic implications of the transaction, Elixir Energy’s Managing Director and Chief Executive Officer, Stuart Nicholls, provides detailed responses to key investor questions below.

How does Omega’s investment validate the quality and scale of Elixir’s Taroom Trough position?

Omega’s commitment to invest up to $14.6 million for a 19.43% interest provides a strong external endorsement of the scale and strategic value of our acreage.

Omega is already a fellow operator within the Taroom Trough where Ilwella and Tri Star are substantial shareholders, and this gives them a highly informed perspective on the basin centred gas potential and its ability to progress toward commercial development.

Their willingness to become substantial shareholders highlights the credibility of our independently certified two C contingent gas resources of approximately two point eight TCF which sit adjacent to Shell’s primary area of investment and lie close to key infrastructure including the Wallumbilla Gas Hub, multiple pipelines, nearby refineries and twenty five million tonnes per annum of LNG export capacity.

To reflect the significance of this step, Stuart Nicholls stated:

“This is a moment of recognition and validation for Elixir with Omega becoming substantial shareholders and supporting the pursuit of the Company’s maiden Reserves via the expanded program at the high impact appraisal well at Lorelle 3.”

This investment affirms that our acreage is viewed as a valuable position within what is described as the largest undeveloped east coast gas resource.

What strategic outcomes does this capital raising unlock for Elixir as it enters Phase 2 of its Strategic Plan?

The capital raising enables the Company to move decisively into Phase 2 of its Strategic Plan which focuses on reserve definition and accelerated technical evaluation.

With total proceeds of approximately $16.6 million across Omega’s placement and Nero Resource Fund’s additional two million dollar tranche, Elixir is funded to execute the expanded work scope required to pursue reserve progression while meeting all remaining commitments for full acreage retention.

The centrepiece of Phase 2 is the Lorelle 3 appraisal well which will commence in January twenty twenty six and now includes the drilling of a vertical pilot well, an expanded logging and coring program and a horizontal sidetrack of at least one thousand metres into the Tinowon Dunk Sands.

This will be followed by multi stage stimulation and a production test designed to assess the potential for commercial flow.

Successful demonstration of commercial rates may enable a portion of the one thousand and fifty seven BCFe of net two C contingent resources in ATP 2056 to be converted to reserves.

Framing the importance of this well, Stuart Nicholls noted:

“Lorelle 3 is set to be a defining well in the evolution of the Taroom Trough and Elixir’s journey, as it may demonstrate that Elixir can convert its huge Contingent Resource position to Reserves via the application of horizontal drilling and multi stage stimulation.”

How will the new capital be deployed across the Company’s near term operational programs?

The capital is allocated across three essential operational initiatives, each aligned with the Company’s advancement from contingent resources toward reserve certification.

The largest portion supports the Lorelle 3 appraisal program which includes the vertical pilot well, the comprehensive logging and coring program and the horizontal sidetrack with multi stage stimulation.

This integrated program also qualifies for research and development treatment which may apply to up to forty eight point five percent of the total costs through the Company’s R and D Advance Finding.

In parallel, funds will support the fracture stimulation and production testing of the twenty three metres of net gas pay identified at the Diona 1 exploration well, with testing scheduled for March 2026.

Subject to joint venture processes, a successful production test may allow the well to be tied into the adjacent pipeline which would enable ongoing flow testing and cash flow generating production operations.

The Teelba two D seismic program will also proceed, with two hundred kilometres of new seismic to be acquired within ATP 2057.

This seismic is required for retention of the permit and is designed to help define additional Permian reservoirs that may be continuous with Shell’s operational area and may support future contingent resource certification.

What are the key terms of the Omega placement agreement that investors should be aware of?

The placement agreement with Omega is structured in two tranches totalling approximately three hundred and fifty six point five million new shares issued at four point one cents per share, representing a two point four percent discount to the last closing price.

Tranche one comprises approximately three hundred and thirty nine point nine million shares for thirteen point nine four million dollars under Elixir’s placement capacity, while tranche two comprises approximately 16.6 million shares for $680,000 and is subject to shareholder approval at an extraordinary general meeting expected in January 2026.

The agreement grants Omega the right to nominate two directors to the Elixir Board while it retains at least fifteen percent voting power, supported by appropriate conflict protocols.

A technical committee will be established to enable operational collaboration and information sharing, and Omega may provide technical information to Tri Star under agreed confidentiality arrangements.

Omega also retains an equity participation right in future capital raisings while holding at least ten percent voting power, and a standstill arrangement applies for twelve months subject to specific exceptions.

The depth of cooperation anticipated is reflected in the following comment:

“Having formal collaboration mechanisms will allow Omega and Elixir to share experiences and accelerate technical learnings in progressing towards the unlocking of what is the largest undeveloped East Coast gas resource.”

How does this capital raising position Elixir financially as it prepares for its operational programs?

Upon completion of the capital raising, Elixir expects to hold a pro forma cash balance of approximately $25 in addition to the value associated with its R and D Advance Finding.

This financial strength provides the Company with the ability to undertake the expanded Lorelle 3 appraisal program, the Diona 1 production test and the Teelba two D seismic campaign without deferring key activities or altering the planned sequence of work.

It also ensures the Company can meet all remaining commitments required to maintain one hundred percent retention of its Taroom Trough acreage.

Stuart Nicholls emphasised the broader potential of the basin as follows:

“The Taroom Trough has the scale to not only adequately service the deteriorating east coast energy market but also keep Queensland’s extremely valuable export industry full for multiple decades to come.”

Strengthened position ahead of a transformative operational year

The capital raising marks a significant point in Elixir Energy’s corporate trajectory, enabling the Company to enter Phase 2 of its Strategic Plan with the financial resources and strategic partnerships required to pursue reserve progression and execute its near term work programs.

With Omega and Nero’s support, Elixir is well positioned to advance the Lorelle 3 appraisal well, further evaluate Diona 1 and complete the Teelba seismic survey which together form a critical foundation for future resource maturation.

As the Company prepares for a pivotal operational year, the strengthened balance sheet and expanded program reflect a clear path forward in unlocking the value embedded within the Taroom Trough which holds the largest undeveloped east coast gas resource and represents a material long term opportunity for the Australian energy market.

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