Elixir Energy (ASX:EXR) has secured a farm-in agreement with a wholly owned subsidiary of Santos (ASX:STO) for 50% working interests in exploration licenses in two permits ATP 2056 and ATP 2057 in Queensland's Taroom Trough, according to a Tuesday filing with the Australian bourse.
The deal follows the booking of 1.2 trillion cubic feet equivalent (TCFE) in contingent resources from ATP 2056, bringing Elixir's total contingent resources in the region to 3 TCFE, the filing said.
The company is raising AU$9 million to fund the farm-in activities, including an AU$7 million placement and up to AU$2 million from a shareholder placement, the filing added.
Elixir plans to drill a vertical well in ATP 2056 in the third quarter and acquire 2D seismic data in ATP 2057, with operatorship to revert to Santos after meeting exploration commitments.
The deal and fundraising are highly accretive to EXR'S contingent resources per share, the company said.
Shares of the company fell 11% at market close.
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