Slide 1: Essential Energy Presentation
For personal use only Essential Energy Presentation 18 September 2024 ASX:EXR
Slide 2: Gas - Macro Overview
For personal use only Gas - Macro Overview 1. 2. 3. The energy transition LNG demand forecast East Coast Australia is very hard to rise gas supply crisis • A wide variety of challenges – • Multiple industry and • The long recognised supply physical, economic and Government parties crunch is now upon
Slide 3: The East Coast Gas Crisis is Upon Us
The East Coast Gas Crisis is Upon Us The Taroom Trough has the location and scale to make a difference For personal use only • For many years industry observers have noted the Long-term supply outlook East Coast gas market faces a rapidly growing gap Gas shortfalls possible from 2027 between demand
Slide 4: The Elixir Team
For personal use only The Elixir Team Board of Directors Quality Partners and Suppliers Richard Cottee Non-Executive Chairman – Information Sharing Agreement Former Managing Director of CSG focused Queensland Gas Corporation (QGC), taking it from market cap of $20M to $5.7B Other former CEO position
Slide 5: Corporate Shareholder Information
Corporate Shareholder Information Capital Structure 5.5% | MD & Directors For personal use only Capital Structure Current Number of Shares 1,196 million 19.2% | Top 20 Elixir Energy Shareholders Options & Perf Rights 132 million Shareholders Market Capitalisation (at A$0.15) A$180 million Cash (30/6
Slide 6: The Taroom Trough – An Advantaged Location
The Taroom Trough – An Advantaged Location The prolific Bowen Basin is now set to deliver another energy source • The Grandis Gas Project is very well For personal use only located in the Taroom Trough in the Southern Bowen Basin • Australia’s premier physical and commercial gas hub – Wallumbilla –
Slide 7: Material and Growing Energy Infrastructure
Material and Growing Energy Infrastructure The Taroom Trough is adjacent to substantial and growing energy infrastructure For personal use only • New energy sources always benefit from adjacency to existing energy infrastructure – brownfields economics apply • The region has a substantial existing g
Slide 8: Daydream-2 makes multiple breakthroughs
Daydream-2 makes multiple breakthroughs Over-pressured Basin Centred Gas (BCG) play now proven For personal use only 1 Game-changing mechanical earth model validated Coal desorption via cuttings identifies 2 very high gas content 3 Free-flowing gas reservoir below 4,200m 4 Successful pinpoint stimul
Slide 9: Commercial Flow Rate Achieved
Commercial Flow Rate Achieved Elixir’s Daydream-2 well has a low commercially viable flow rate For personal use only Key Assumptions • Economic Modelling shows a Breakeven Flowrate: 2.5 MMCFPD breakeven flowrate of ~2.5 MMCFPD1 Recoverable Gas: 3 BCF • Stabilized rates of 2.5 Initial Development: 10
Slide 10: Cracking The Taroom's Code
Cracking The Taroom’s Code The vast gas resources of the Taroom Trough are starting to be unlocked For personal use only In ATP 2044, the primary current play-type is BCG - which is an CH4 unconventional accumulation with no structural trap required - the gas is present permit wide. Often called a “
Slide 11: Multiple Operator Activity
Multiple Operator Activity The Taroom Trough is currently the host of the largest onshore appraisal investment on the East Coast For personal use only “An apparent gas strike by energy giant Shell deep underground in onshore Queensland has fuelled industry hopes of a potential major new source of en
Slide 12: Attractive to Large Sources of Capital
Attractive to Large Sources of Capital Securing material capital for gas development needs to pass through multiple gates For personal use only • The Taroom Trough is a favourable location for such large companies: 01 Brownfields – many majors, large LNG buyers, etc, are 02 Low emissions profile – t
Slide 13: Growing & De-Risking the Resource Base
Growing & De-Risking the Resource Base The Grandis Project’s resource progression (ATP 2044 + ATP 2077 combined) has seen For personal use only impressive growth Current Resources Contingent (2C) 1.47 Tcf Increased h wt Acquisition of coal resource d gro ith e y nu ted w tivit ATP 2044 nti c Co tici
Slide 14: Grandis Project - Timeline
Grandis Project - Timeline Acquired SPV EnergyCapture Pty Ltd Detailed offset well review For personal use only Finalise Daydream-2 well location 2022 Q1 Q2 Q3 Q4 Extensive Onshore Australia Initial Contingent Resource Booked Gas Opportunity Screening Independently certified by ERCE Establish small
Slide 15: Mongolian CBM Asset Overview
Mongolian CBM Asset Overview Elixir was the pioneer in another gas play opener – CBM in Mongolia For personal use only 01 Elixir’s foundation asset – the 100% owned Nomgon IX Coal Bed Methane (CBM*) Production Sharing Contract (PSC) project in the South Gobi region of Mongolia ATP 2044 02 Highly exp
Slide 16: Extended Pilot Production Test
Extended Pilot Production Test The Nomgon project is getting ever closer to a key inflection point – a commercial flow rate For personal use only Progress to date Nomgon-9 flare • Mongolia’s first CBM pilot - commenced in late 2022 • Early gas flows - likely due to dual porosity/perm • Meaningful ga
Slide 17: Multiple Short Term Work Streams
Multiple Short Term Work Streams Short term activity and newsflow in Queensland and Mongolia For personal use only Grandis 1. Daydream-2 clean-up and testing of all zones continues through September/early October 2. Completion and formal production testing under consideration 3. Planning for Daydrea
Slide 18: Summary
For personal use only Summary The World needs more gas for The East Coast has very The Taroom Trough has longer – now explicitly strong pricing, a growing multiple locational advantages recognised by Govt policy supply gap & LNG plant to serve these markets ullage The Taroom is currently The massive
Slide 19: Important Notice & Disclaimer
For personal use only Important Notice & Disclaimer This document has been prepared by Elixir Energy Limited (ABN 51 108 230 995) (“Elixir”) in connection with providing an overview of its business to interested analysts/investors. This presentation is being provided for the sole purpose of providin
Slide 20: Appendix 1A – Contingent Resources
For personal use only Appendix 1A – Contingent Resources Based on the work undertaken by Elixir in ATP 2044, the Company sought an independently certified contingent resource estimate (from international firm ERC Equipoise Pty Ltd – “ERCE”) for ATP 2077 Sub-block A – see table below. The subclass of
Slide 21: Appendix 1B – Prospective Resources
For personal use only Appendix 1B – Prospective Resources The prospective resources of gas in the Permian coals in ATP 2044 includes both an adsorbed and fractured component, and is estimated as follows: Total Unrisked Prospective Resources1 Recoverable Gas 1U2 2U3 Mean4 3U5 associated with coal sea
Slide 22: Appendix 1C – Notes to Resource Statements
Appendix 1C – Notes to Resource Statements 1. The evaluation date of the ERCE Contingent Resources is 27th May 2024 and 16th August 2024 10. ERCE has used standard petroleum evaluation techniques in the preparation of this report. These For personal use only for ATP 2044 and ATP 2077 respectively. t
Slide 23: Investors & Media
For personal use only INVESTORS & MEDIA Neil Young Managing Director info@elixirenergy.com.au Phone +61 8 7079 5610 www.elixirenergy.com.au www.elixirenergy.com.au ASX:EXR