The Conversation (0)
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to announce the execution of an Information Sharing Agreement with Origin Energy (“Origin”) with respect to the upcoming Daydream- 2 well in its 100% owned Grandis Gas Project in Queensland.
HIGHLIGHTS
- Information Sharing Agreement executed with Origin Energy
- Origin to contribute $1M in non-dilutive funding for Daydream-2
- Data to be acquired for Origin’s overlapping GHG license
Origin is currently in the process of being awarded a Greenhouse Gas (“GHG”) license which overlaps Elixir’s ATP 2044 (see map below). This license facilitates Origin’s plans to investigate carbon capture and storage (“CCS”) in this area.
Elixir’s upcoming Daydream-2 well will intersect formations of potential interest for Origin’s CCS activities. The Information Sharing Agreement between Elixir and Origin therefore provides for:
- Elixir to gather information for Origin – which it would otherwise need to drill its own well to obtain.
- Origin to compensate Elixir for this by paying for all incremental costs in gathering this information.
- In addition, Origin will pay Elixir a further amount of $1M.
- Origin to have the option to enter into similar arrangements in up to five future wells Elixir will drill in ATP 2044.
Elixir’s Managing Director, Mr Neil Young, said: “We are very pleased to announce another non- dilutive source of finance for Daydream-2 (after the R&D tax credits that will come from the Federal Government). This innovative deal provides a great win/win/win for Elixir, Origin – and the State of Queensland – in that one well will provide sub-surface data that would otherwise require two wells. It is Elixir’s firm view that the co-location of natural gas and CCS (and renewables) – forming what Wood Mackenzie has dubbed “Energy Super Basins” - will increasingly form key areas of interest for global energy investors.”
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EXR:AU
