Elixir Energy (ASX:EXR) progresses Warkon Pilot studies
Elixir Energy has progressed feasibility studies and Concept Select work for the Warkon Pilot, its northwestern Taroom Trough gas and condensate production pilot project, with the program covering the infrastructure required to condition gas and transport it to the Wallumbilla Gas Hub.
Highlights
APA Group has completed feasibility work on the custody transfer facilities and pipeline to the Wallumbilla Gas Hub.
A direct northeast pipeline recorded the best economics in APA’s assessment.
The proposed infrastructure has capacity of 40 TJ/d and can operate between 5 TJ/d and 150 TJ/d.
APA provided 2 viable routes measuring 52 km and 53 km.
Simpliphi has been appointed to complete Concept Select and engineering work for the upstream plant.
Phase 2 flow testing at Lorelle 3H is scheduled to commence on 1 October 2026.
APT Management Services, a wholly owned subsidiary of APA Group, completed the assessment under the Early Works Agreement announced on 10 April 2026.
The work examined the optimal path to market for gas produced from Warkon and identified the best economics through a direct connection running northeast.
The Wallumbilla Gas Hub is an exchange for wholesale gas trading and an interconnection point for 9 major pipelines in Queensland, linking supply from the Surat and Bowen Basins with domestic markets and LNG export facilities.
APA’s scope included a custody transfer point covering gas chromatography, a metering station and infield compression.
The study assessed infrastructure with capacity of 40 TJ/d, capable of operating across a range from 5 TJ/d to 150 TJ/d.
An initial Class 5 estimate, with an accuracy range of -30%/+50%, indicated that a 15 year tariff would incur capacity charges between $0.35/GJ and $1.32/GJ.
The charges were based on pilot production throughput of 150 TJ/d and 40 TJ/d respectively, with Elixir noting that the figures were preliminary estimates.
The 2 potential pipeline routes have similar distances of 52 km and 53 km, providing optionality to optimise land access and environmental approvals during the detailed design phases.
Before entering the proposed pipeline, gas brought to surface requires minor upstream conditioning to meet the required specifications.
The identified processes include condensate drop out and trucking offload for sale, together with dehydration and temperature management.
Elixir has engaged Simpliphi to complete Concept Select work on the design and capacity of the upstream plant to match the potential APA infrastructure.
Its scope includes concept design and engineering, a project risk assessment, a preliminary cost estimate and a project execution plan, with Simpliphi’s work expected to be completed in the current quarter.
Elixir Managing Director and Chief Executive Officer Stuart Nicholls said:
“The Warkon pilot program is about defining Elixir’s pathway from appraisal to commercial production.”
The plant, custody transfer facilities and pipeline provide scope to collaborate with neighbouring Taroom Trough operators on multi-user and shared infrastructure, with capacity charges in the feasibility study falling by 74% at full utilisation from 40 TJ/d to 150 TJ/d.
Elixir intends to explore these collaborative opportunities with adjacent operators and bring them to the attention of the Queensland Government’s Taroom Trough Development Forum.
The company is the largest acreage holder in the Taroom Trough within Queensland’s Bowen Basin, which it describes as a multi-TCF Basin Centred Gas Play, and is aiming to appraise approximately 3.5 TCF of independently certified 2C Contingent Gas Resources.
The upstream plant study and APA’s proposed infrastructure will provide inputs into the evaluation of commercial production for future Reserves bookings.
Elixir intends to examine those inputs after Phase 2 flow testing at Lorelle 3H and will provide updates in due course as further developments on the Warkon Pilot occur.