Elixir (ASX:EXR) financed for flow at Daydream-2
Elevated gas levels were already surpassing pre-drill estimates, and fresh off its discovery of an unexpected, naturally permeable gas zone flowing to surface without stimulation, Elixir Energy has raised $6.5 million via placement to expand its Daydream-2 operations and the Grandis Gas Project in Queensland.
The bulk of the capital will be pointed towards expansion of multiple stage stimulation and flow testing of Daydream-2, but the free flow has also offered up new options to explore in what Elixir see as an Energy Super Basin emerging in the Taroom Trough.
Given its recent share purchase plan, the energy explorer opted to not go down that route again, and an offer to sophisticated and institutional investors should minimise dilution as Elixir makes gas while the flow is free and take Grandis to the next level.
“Following last week’s very exciting news of free-flowing gas from Daydream-2, we are pleased to procure this financial backing from existing and new shareholders,” Elixir Managing Director Neil Young said.
“Although our balance sheet is in good shape anyway, this raising will allow us to aggressively pursue an expansion of the stimulation and testing plans at Daydream-2.”
The unstimulated flow was certainly cause for excitement but being encircled by major operations in a highly productive area for conventional oil and gas, Elixir’s novel idea for a multi-TCF gas play already had some keen-eyed observers.
Origin Energy paid a million dollars and associated costs for information on Daydream-2 and the Federal Government will be paying for 43.5% of the total costs through tax incentives for research and development into what could be a big-time asset for nation’s energy ambitions.
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