Elixir Energy (ASX: EXR) emerging gas contender in the Taroom Trough

As supermajor Shell advances exploration in Queensland’s Taroom Trough, Elixir Energy is positioning itself as the fast-follower with the largest acreage position in the basin and independently certified 2.6 trillion cubic feet (Tcf) of contingent gas resources.

Highlights

• 2.6 Tcf 2C contingent gas resource confirmed in Queensland’s Taroom Trough.

• Strategic location near Gladstone LNG and east coast gas infrastructure.

• Partnership with Santos through a farm-in on ATP 2056 and ATP 2057 (Elixir 50% and operator).

• Neighbour Shell’s progress validates the play, with a 3D seismic program planned for 2026.

• Speculative Buy initiation by Euroz Hartleys with a $0.08 target price.

Elixir Energy’s transformation over the past two years reflects a decisive pivot from its Mongolian coal seam gas venture to a domestic strategy focused on the east coast gas market, one increasingly in need of new supply.

The company’s acreage sits directly alongside Shell and Omega Oil & Gas in the Taroom Trough, a deep Permian tight-gas play within Queensland’s Bowen Basin.

Following the successful Daydream-2 well, which flowed gas from multiple intervals, Elixir booked a maiden 2C contingent resource in 2024.

Its subsequent farm-in with Santos added scale and technical depth, lifting total resources to 2.6 Tcf.

Euroz Hartleys’ initiation of coverage cites promising geology, proximity to infrastructure, and validation from Shell’s ongoing activity as key factors underpinning the investment thesis.

The broker notes that Elixir’s valuation remains well below peers such as Omega and Byron, despite a larger footprint and comparable technical maturity.

“Elixir is strategically positioned in an emerging basin-centred gas system that could become a cornerstone of east coast energy supply,” the report states. “With Shell proving the commercial potential next door, Elixir’s role as a fast-follower could deliver strong leverage to success in the basin.”

The Taroom Trough offers logistical and commercial advantages uncommon in frontier exploration.

Existing gas infrastructure, a supportive jurisdiction, and forecast supply shortfalls by 2028 combine to create a compelling environment for appraisal and future development.

With new leadership under former Strike Energy managing director Stuart Nicholls, the company is advancing multiple appraisal wells including Lorelle-3 and Daydream-3, to convert resources to reserves.

While still in the early appraisal phase, Elixir’s combination of scale, timing and regional validation sets up a high-impact trajectory for 2026.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.