Elixir Energy Ltd (ASX:EXR) has entered a data-sharing agreement with oil and gas giant Santos covering planned wells in neighbouring permits in the Taroom Trough of Queensland’s Bowen Basin.
The agreement with a Santos group company is in connection with Elixir’s 100%-owned Grandis Gas Project (ATP 2044) located in the basin.
It provides for Elixir and Santos to exchange technical data on planned wells in the neighbouring ATP 2044 (Elixir) and ATP 2056 (Santos) exploration permits in the Taroom Trough.
Neighbour on multiple sides
Elixir’s managing director Neil Young said: “We are naturally very pleased to enter into this agreement with a company of the size and quality of Santos, who is a neighbour on multiple sides of our Grandis Project.”
The agreement covers neighbouring tenements.
The agreement also provides a mechanism to establish a forum for technical discussions about the deep Permian plays in the Taroom Trough.
Cooperative efforts
"The enormous potential of the known and extensive gas resources in the Taroom Trough will have a greater chance of being realised through such cooperative efforts,” Young said.
"We look forward to working with Santos in the years ahead to develop this play,” he added.