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Elixir Energy
(ASX:EXR)


Overview

πŸ“‹ About: Elixir Energy (ASX:EXR) is exploring for natural gas on the Mongolian-China border to replace burning of coal for energy in China.

🌏 Macro Theme: China’s 5 year plan to reduce carbon emissions requires a heavy reduction in burning coal for energy and aims to reduce reliance on foreign powers for energy supply.

EXR Corporate Milestones

βœ… Portfolio Initiation & Energy Pick of the Year 2019
βœ…
$1.75M Capital Raise @2c per share
βœ…
MT Group non-Binding MOU for small scale LNG project
🌎 Increase in China's Gas Demand
βœ… MOU with Ministry of Energy
βœ… $10M Capital Raise @36c (Institutional Investors)
βœ… $16.6M Capital Raise @36c (SPP)

πŸ”² Unexpected Announcement 1
πŸ”² Unexpected Announcement 2
πŸ”² Unexpected Announcement 3

Natural Gas Project

Project Milestones

βœ… Environmental Impact Assessment Approved
βœ… 200km of Seismic Operations (2019)
βœ… 4 Wells Drilled in 2019
βœ… 7 Wells Drilled in 2020
πŸ”„ 13 Wells Drilled in 2021
πŸ”„ 200km of Seismic Operations (2021)
βœ… Prospective Resource Increased
πŸ”² Production testing well drilled at Nomgon
πŸ”² Production testing well drilled at Yangir
πŸ”² Update on Nomgon power station project
πŸ”² Other wells yet to be named based on seismic and analysis from other wells

2019 Drilling Results

🟨 Appraisal well 1 intersects coal (BO-CH-1)
🟨 Appraisal well 2 intersects coal (BO-CH-2)
πŸŸ₯ Appraisal Core-hole 1 intersects coal, limited gas recovered (Ugtaal-1)

2020 Drilling Results

🟩 Appraisal Core-hole 2 returns gas (Nomgon-1)
🟩 Lab Results: Fully Saturated Gas Nomgon-1
🟩 Appraisal Core-hole 3 intersects coal (Nomgon-2)
🟩 Core testing from Nomgon-2 returns gas
🟨 Appraisal well 3 intersects coal (Nomgon 3S)
🟨 Appraisal well 4 intersects coal (Nomgon 4S)
🟩 Appraisal well 5 intersects coal (Nomgon 5S)
🟩 Exploration well 1 intersects coal (Hutul 1S)
🟩 Lab Results: Fully Saturated Gas Nomgon 2
🟩 Exploration well 2 intersects coal (Yangir 1S)

2021 Drilling Results

🟩 Appraisal Core-hole 4 returns "sales gas" (Yangir-2)
πŸŸ₯ Exploration well 3 does not intersect coal (Temee-1S)
πŸŸ₯ Exploration well 4 does not intersect coal (Cracker 1-S)
πŸŸ₯ Exploration well 5 mechanical failure (Manlai-1S)
🟩 Exploration well 6 intersects Coal (Richcairn-1S)
🟨 Core-hole 5 Drilled & Intersects Coal (West Yangir-1)
🟩 Core-hole 6 Drilled & Intersects Coal (Nomgon Central-1)
πŸ”² Lab Results Core-hole 5
πŸ”² Lab Results Core-hole 6
🟨 Appraisal well 6 intersects coal (Kingston-1S)
🟨 Appraisal well 7 intersects coal (Kingston-2S)
🟨 Appraisal well 8 intersects coal (Kingston-3S)
πŸ”„ Appraisal well 9 (Nomgon 6)
πŸ”² New Well 12
πŸ”² New Well 13

Green Hydrogen Project

βœ… Green Hydrogen Project Announced
βœ… SODAR Machine Mobilised
πŸ”² Update on initial SODAR results
πŸ”² New Milestones Added

Next Investors Investment Milestones

βœ… Initial Investment: @3.9c
βœ… Increase Investment: @2.6c
βœ… Increase Investment: @13c
βœ… Price increases 500% from initial entry
βœ… Price increases 1000% from initial entry
πŸ”² Price increases 2000% from initial entry
βœ… 12 Month Capital Gain Discount
βœ… Free Carry
βœ… Take Some Profit

πŸ”² Hold remaining Position for next 2+ years

”Expected Company Milestones” are based on the company's publicly available execution plan and some assumptions made by our team on potential announcements that should de-risk the investment. β€œOur investment milestones” show our current long-term investment plan. Early stage investments are risky and there is no guarantee that the expected events will occur. The lists are not in sequential order.

Key

πŸ”² Expected Milestone
βœ… Achieved Milestone
🟩 Above Average Result
🟨 Average (Expected) Result
🟧 Below Average Result
πŸŸ₯ Negative Result
🌎 Macro Event
βš”οΈ Results from Other Company / Project
πŸ”„ In Progress
[UPA] Unexpected Positive Announcement
[NEW] New Milestone Added

Why we have invested...

Giant prospective resource next door to China

Massive 30,000km2 PSC with very large prospective resource. EXR has enlarged its prospective resource from 7.6 tcf of gas (risked β€œbest” (mid) case) to a (best case) of 14.6 Tcf, a 92% increase from the 2018 estimate

Multiple market channels

Cash-flow generation can be early & modular. EXR has partnered with one of Mongolia’s largest fuel retailers to develop a Small Scale LMG (SSLNG) plant. The Asian Super grid and Power of Siberia II pipeline also present opportunities

Deep CSG expertise from Australia being transmitted to Mongolia

The EXR Team has a history of success in CBM in Richard Cottee (the β€œgodfather” of QLD CSG) plus ex-Santos Neil Young and Stephen Kelemen. Delivered Mongolia’s first CSG discovery at Nomgon-1 well & Nomgon-2 exceeded expectations

Current exploration program

Upcoming fully funded exploration is aimed to open up new sub-basins in a number of locations across the gigantic PSC area. A contingent resource booking for Nomgon sub-basin targeted for year end.

100% ownership of PSC

100% ownership position maximises optionality to pursue value adding farmout(s).