Taroom Trough gas developer Elixir Energy has raised $5 million in a placement as it launches a review to find the best corporate and commercial strategy to advance its interests there.

The company said it had moved beyond its initial exploration and appraisal phases, confirming the existence and extension of Shell’s primary plays into Elixir’s permits in the region.

Initial flow testing results from Lorelle-3H supported the modelling of a potential commercially viable development within ATP2056, the company said.

“This placement strengthens our balance sheet at a pivotal time for the Taroom Trough, where industry interest in the play has never been higher and the collective work from ourselves and adjacent operators is advancing quickly towards commercial development,” Elixir Energy (ASX: EXR) managing director and chief executive officer Stuart Nicholls said.

“Elixir holds the largest land position across every known and tested play in the Trough, and that position is attracting significant external attention.

“Now is the right time to assess the full range of paths available to convert this into shareholder value. Over the coming period, we’ll be evaluating those options while continuing our planned well testing across our Taroom portfolio.”

The strategic review will consider options including:

• Retaining and self-funding the continued appraisal and development of some or all of the company’s assets;
• A partial or full farm-out of interests in one or more permits to a strategic or financial partner;
• Corporate transactions, including potential strategic partnerships, joint ventures or other structures; or
• A combination of the above.

Elixir also plans to use funds from the placement to support downhole pressure monitoring, technical works and observation of the Lorelle-3H well during the 60-day soak period as well as subsequent costs to recommence flowing the well.

It will also help cover costs associated with the data gathering and evaluation of the well, post-flow performance and engagement of the independent reserve certifiers.

The funding will also support the artificial lift and recommencement of the flow testing at Diona-1 (subject to JV approval) and conclusion of the potential resource certification process.

The placement will result in the issue of 125,000,000 fully paid ordinary shares at an issue price of $0.04 per share. Settlement of the placement is expected to occur on August 19.