Elixir Energy


Last Price:


Our Investment Summary

Date of Initial Coverage


Initial Entry Price


Returns from Initial Entry


Our Big Bet for EXR

EXR to achieve a $1BN market cap through successfully advancing one or more of its three projects: its Mongolia gas project, Mongolia green hydrogen project, and/or its Queensland gas project.

Investment Memo: Elixir Energy (ASX:EXR) - LIVE

Opened: 10-Mar-2022

Shares Held at Open: 3,500,000

What does EXR do?

Elixir Energy (ASX:EXR) is looking to build out a clean-energy producing hub consisting of Coal Seam Gas and Green Hydrogen in southern Mongolia, bordering China.

What is the macro theme?

Decarbonisation via natural gas energy production and green hydrogen technology. As the world looks to cut greenhouse gas emissions, gas and green hydrogen may prove to be major building blocks towards a net zero economy.

Why did we invest in EXR?

Strategic location in Mongolia

EXR's project is on the border of the clean-energy hungry China, seeking transitions to cleaner, nearby energy sources.

Strong board & management team

A history of success in coal seam gas.

Green-Hydrogen potential

A research report indicated a strong base for a potential Green-Hydrogen project over EXR’s Nomgon PSC.

Fully funded exploration

Drilling planned across giant landholding seeking to open up new sub-basins and add to existing prospective gas resource.

Strong balance sheet

EXR’s $28.4M in cash (at 31/12/2021) can fund its existing business lines for the indefinite future, plus allows for potential acquisitions.

What do we expect EXR to deliver?

Objective #1: Pilot production program at the gas project

Design, costings, and permitting leading to a maiden pilot production program this year.

Objective #2: Exploration drilling

In addition to the pilot production program, Elixir will continue its exploration program across the Nomgon PSC, with ~20 wells planned for 2022.

Objective #3: Evaluate the Commercial Viability of a Hydrogen Project

  • Updates on MOUs signed with the government, and other stakeholders, exploring the potential for a Green Hydrogen project over the project area.
  • Other key 'studies' undertaken including legal, environmental, and commercial evaluation of the project.

What could go wrong?

Production risk

EXR is drilling for “Coal Seam Gas”. There is a risk that while there are gas shows, they may not be commercially extractable. CSG gas is more complex in nature as compared to conventional gas deposits.

Commercial risk

Green hydrogen project economics depend on governments putting in place mechanisms to support net zero goals.

Geographic risk

There is country-risk. Any political instability might put the production sharing contract at risk.

What is our investment plan?

We have been holding EXR since 2019, while we free carried and took profit during 2020 and 2021, we recently added to our position on market at 16.5c.

Our plan with EXR is to hold to see the company achieve our 2022 objectives, but will look to de-risk our position by selling 20% if the share price significantly re-rates on achieving our 2022 objectives OR based on the strong macro theme of global gas shortages and green energy.

General updates from EXR

EXR wraps up a strong year at its 3 energy projects [22-Dec-2022]

Disclosure: The authors of this article and owners of Next Investors, S3 Consortium Pty Ltd, and associated entities, own 3,500,000 EXR shares at the time of publication. S3 Consortium Pty Ltd has been engaged by EXR to share our commentary and opinion on the progress of our investment in EXR over time.

Investment Milestones for EXR

✅ Initial Investment: @4.2c
✅ Top Slice
✅ Free Carry
✅ Increase Investment: @2.6c
✅ Free Carry
✅ Increase Investment: @13c
✅ Free Carry
✅ Increase Investment: @16.5c
✅ Free Carry
✅ Take Profit

Price increases 300% from initial entry
Price increases 500% from initial entry
Price increases 1000% from initial entry
✅ 12 Month Capital Gain Discount
✅ Free Carry
✅ Take Some Profit

Hold remaining Position for next 2+ years

Our Past Commentary on Elixir Energy

Date Title
11-Nov-2022 $ EXR to drill for gas in Queensland - Next Door to Shell and Santos
31-Aug-2022 $ Clean energy and natural gas in the Gobi desert
27-Jun-2022 $ 0.135 Market Mood Swings, Price Discovery & Enterprise Value
20-Jun-2022 $ EXR Inks Green Hydrogen MoU with a SoftBank Subsidiary
18-Jun-2022 $ 0.000 Raising cash in a rough market and what to watch out for
07-May-2022 $ 0.160 Natural gas and the clean energy transition
31-Mar-2022 $ New sub-basin discovered
12-Mar-2022 $ 0.150 Nickel, the War and Under Investment in Exploration
10-Mar-2022 $ Why we invested in EXR and what we want to see in 2022.
05-Mar-2022 $ 0.155 Mainstream Media Catching on to the Commodities Supercycle
21-Feb-2022 $ 0.165 Why we invest in Oil & Gas and Precious Metals
05-Feb-2022 $ 0.185 The "Lesser Kown" Energy Transition Metals: Copper, Aluminium, Graphite, Helium, Rare Earths
22-Jan-2022 $ 0.160 Our Investment Approach, Energy Cold War, Ukraine, Supply Chain Crisis
08-Jan-2022 $ 0.180 Early-year trading indicates market is set for an up-and-down year
11-Dec-2021 $ 0.205 ASX rests pre-Christmas as the market trades on very low volumes
27-Nov-2021 $ 0.240 New COVID strain, Santa Rally, Market Thoughts
06-Nov-2021 $ 0.260 COP26, Battery Metals, Green Energy
30-Oct-2021 $ 0.260 The fallout from the VUL short attack explained
16-Oct-2021 $ 0.325 Mainstream media casts a big spotlight on Green Hydrogen
14-Oct-2021 $ EXR Signs Hydrogen MoU with Mongolian Ministry of Energy while Three Drill Rigs Continue Gas Search
02-Oct-2021 $ 0.255 Evergrand, Gold and Traditional Energy
30-Sep-2021 $ EXR reveals hydrogen plans at International New Energy Summit
18-Sep-2021 $ 0.255 Why uranium stocks are soaring, one good movie recommendation
28-Aug-2021 $ 0.225 Recap of the KNI IPO and share price run
07-Aug-2021 $ 0.240 Market swings back up as small caps scramble towards the end of the year
24-Jul-2021 $ 0.210 Why stocks go into "Quiet Execution Mode", how to spot a cap raise, stock "Confession Season"
26-Jun-2021 $ 0.260 June tax loss selling is behind us, KNI IPO expected in August
05-Jun-2021 $ 0.335 What did our investmensts do this week? BPM, VN8, IVZ, and more...
04-Jun-2021 $ 0.290 EXR Emerging from Post Placement Price Pressure
04-Jun-2021 $ 12 months on, a de-risked EXR continues to deliver
07-May-2021 $ 0.390 EXR Just Started Drilling Cracker-1S Well - Results Coming in Weeks
30-Apr-2021 $ 0.355 EXR Accelerates 2021 Drilling with $10M and Announces Hydrogen Plans
27-Apr-2021 $ 0.395 Our Portfolio Performance from January 1st to March 31st 2021
14-Apr-2021 $ 0.440 EXR’s 2021 Mongolia Drilling Program is Well Underway
26-Feb-2021 $ 0.220 Why is The EXR Share Price is Running?
18-Feb-2021 $ 0.180 We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?
07-Jan-2021 $ 0.165 Our Stock Picks for 2021
09-Dec-2020 $ 0.105 EXR Doubles its Gas Resource on China's Doorstep
05-Dec-2020 $ 0.100 This Week’s News Makers are Riding High
23-Nov-2020 $ 0.130 Big Gets Bigger - New Sub-Basin Discovered
23-Oct-2020 $ 0.110 Could EXR Unlock a New Sub Basin at its Mongolian Gas Project?
20-Aug-2020 $ 0.115 EXR’s Nomgon-2 Gas Well Exceeds Expectations
29-Jul-2020 $ 0.093 EXR Strikes Exceptionally Thick Coal Seam: Gas Content Results Imminent
10-Jul-2020 $ 0.044 Elixir Spuds CSG Well - A Follow up on Mongolia’s First Gas Discovery
26-Jun-2020 $ 0.036 EXR Now Days Away from Multi-Well Gas Drilling Campaign in Mongolia
05-Jun-2020 $ Mongolia’s First Gas Discovery
26-May-2020 $ 0.024 We Have Doubled our Holding in EXR – Mongolian Gas Exploration to Accelerate
26-Feb-2020 $ 0.041 Mongolia’s First Gas Discovery, The First of Many for Elixir Energy?
05-Feb-2020 $ 0.031 Gas Bubbles Highlight Excellent Results from EXR’s Second Core-Hole
11-Oct-2019 $ 0.048 Our Top Pick of 2019: Elixir Energy (ASX: EXR) Drilling This Weekend
11-Jul-2019 $ 0.042 Introducing Our Top ASX Energy Pick of 2019

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