EXR now free carried for a well in Q3-2025…

Our domestic energy Investment Elixir Energy (ASX: EXR) just signed a farm out agreement for one of its gas blocks in QLD.

EXR’s farm out is for a 51% interest in a portion of its ATP 2077 block.

As part of the deal EXR is free carried on a well that would be drilled in Q3 of this year.

The farm out deal is with ASX listed Xstate Resources and EXR retains 100% of all the remaining blocks that make up its QLD assets.

EXR put out a presentation on the farm-out which runs through the details of the deal, including the “accelerated” farm-out terms which mean Xstate has to drill a well on the block before 30 September 2025.

So we get to see a well on EXR’s ground inside the next ~6 months without EXR having to fund anything.

Check out the full presentation here:

(Source)

More news from EXR’s neighbour Omega Oil and Gas this morning

This morning we also saw an announcement come out of EXR’s neighbour in the Taroom Trough - Omega Oil and Gas.

Omega just drilled its first horizontal well a few weeks back and managed to flow oil and gas to surface at relatively high rates.

We covered that announcement from Omega in a Quick Take a few weeks ago here: EXR - Regional neighbour flow test results are in…

News out of Omega is important for EXR because they are targeting the same play type in the region.

EXR has almost double Omega’s contingent resource - EXR has ~3TCF, Omega has ~1.7 TCF.

AND EXR has a much larger ground position.

So the way the market values Omega has implications for our Investment in EXR.

Omega is currently capped at $70M.

EXR is capped at ~$26M.

Today, Omega announced that it would be running more tests on it’s horizontal well, which could mean we see a lot more newsflow from them over the coming weeks.

Omega also teased potential partnerships with the following line in their announcement.

(Source)

If any deals were to happen, given where Omega’s market cap is and where EXR is, we think it could be a catalyst for a move in EXR’s share price.

What’s next for EXR?

🔄 More news from EXR’s neighbour Omega

Omega today announced it would be running more tests on its horizontal well.

We will be looking out for news from those test programs over the coming weeks.

Objective #3: Regional progress

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

🔄 Share Purchase Plan to raise up to $2M

EXR is currently running a Share Purchase Plan (SPP) to raise up to $2M at 3.5c.

The SPP also comes with 1:2 free listed option exercisable at 12c, with a 17 October 2026 expiry.

The offer is expected to close on the 15th of April.