EXR - Share Purchase Plan timetable announced

Our domestic gas Investment Elixir Energy (ASX: EXR) just put out an indicative timetable for its Share Purchase Plan (SPP).

Just a few weeks ago EXR raised $7M via a placement to sophisticated investors at 3.5c

(we participated in that raise)

The SPP is EXR’s way of offering the same terms as that cap raise to all existing shareholders.

What it means is that all existing shareholders have the right to apply for $30,000 in EXR shares at 3.5c per share - up to a total of $2M to be raised from all existing shareholders.

As with the private placement, SPP applicants also get the ONE free attaching option for every two new shares acquired with an exercise price of 12c and expiry of 17 October 2026.

Here is the indicative timetable:

It’s also worth noting that this is just an indicative timetable and these dates could change, we will know the exact dates once EXR lodges a prospectus for the offer (expected Thursday 6th March).

Why we participated in the recent capital raise:

In short, we think that EXR’s projects are in a part of QLD where there is going to be a lot of activity over the coming months.

We already know that Shell have been drilling in the region and now in just a few weeks EXR’s neighbour Omega Oil and Gas is going to run a flow test of its first Horizontal well.

We think that if Omega can get a giant flow rate from its well, it will bring a lot more eyeballs to the Taroom Trough.

(This image was from our note published on the 24th of February, the market caps for some of the names mentioned may have changed since then)

To see our deep dive on why we Increased our Investment in EXR check out the note from the 24th of February here: EXR’s bigger neighbour Omega set to flow test any day now

What’s next for EXR?

In the short term our focus will be on watching what happens with Omega’s flow test next door.

We did see the company put out an announcement yesterday saying that the flow test would start next week.

So things should start to get interesting over the next few weeks

Progress in the region is objective #3 in our new EXR Investment Memo:

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