EXR appoints new Chief Operating Officer
Our domestic energy Investment Elixir Energy (ASX: EXR) just brought onto its team another Ex-Strike Energy team member…
Just a few weeks ago, EXR appointed Stuart Nicholls as its new CEO/Managing Director.
Stuart was previously CEO/MD for Perth Basin gas developer Strike Energy.
Stuart was largely responsible for taking Strike from being a small Perth Basin explorer to an ASX200 company.
(Today Strike is capped at >$500M)
Today, EXR added Kinglsey Rudeforth as its new Chief Operating Officer.
Before joining EXR, Rudeforth was the Drilling Superintendent and Lead Drilling Engineer for Strike Energy Limited.
So EXR is now bringing the old Strike team back together again…
Rudeforth will be the technical lead behind EXR’s “three-phase strategic plan” for the company’s QLD gas asset.
Check out the following presentation to see EXR’s CEO run through that plan:
(Watch the presentation here)
Performance rights from today’s announcement a clue for what management is targeting?
One thing we noticed in today’s announcement was the performance rights that EXR agreed with its new COO:
It's not abnormal to see performance rights be granted to senior executives.
But one thing to note is that almost always these are negotiated and agreed on both by the company and the incoming executive.
These rights are usually a good reference point for what the incoming executive thinks is achievable and what the company hopes they can deliver.
In this case, a large chunk of the performance rights exercise based on share price hurdles as high as 18c per share…
18c would be over 600% higher from where EXR is today…
What's next for EXR?
The following slide from EXR’s most recent presentation lays out what we can expect to see over the coming months.
Next for EXR we want to see the following two catalysts:
1. Drilling of the Diona-1 well
EXR is free carried on this well under a farm-out agreement with ASX listed Xstate.
If Xstate can organise it’s finances in time this well is due to be drilled BEFORE 30 September 2025.
2. The conclusion of a “capital process”
We assume this means some sort of partnership discussion around financing for the rest of EXR’s work programs.
EXR has talked about being in active discussions regarding this several times now.
3. More news from EXR’s neighbour Omega
We will also be watching out for more newsflow from EXR’s regional peer Omega Oil and Gas.
We expect to see Omega put out more detailed results in the coming weeks and to outline its forward plan.
Objective #3: Regional progress
This objective is less specific to things EXR can control, but we think it is important for the EXR story overall. We want to see EXR’s regional peers progress their projects and prove up commercially viable flow rates across the region.
Milestones:
🔄 News from EXR’s peer Omega Oil and Gas
🔄 News from Shell
🔲 News from Santos
🔲 BONUS - New entrants into the region
Source: “What do we expect EXR to deliver?” - EXR Investment Memo 24 Feb 2025
