ERC Equipoise has updated its independent review of Elixir’s prospective resources, lifting the mid-case risked estimate (2U) by 92% to 14.6 tcf (prev. 7.6 tcf). The increase recognizes greater gas in place and higher geological chance of success (30% vs. 19% prev.), based on recent drilling. Results from the two core holes indicate high gas content (8.6-8.9 m3/t DAF) and fully saturated coals, indicating good CBM potential. With cash at bank and in the-money options due by end December Elixir is funded to continue exploration and appraisal in the new year. We value Elixir at $0.29/sh (prev. $0.27), with a range from $0.11-0.52/sh, depending on resource outcomes
We are currently sitting @ 27 cents with a range of up to 52 cents depending resource outcome, Are K1 talking about Contingent res outcome? we will find out soon.
EXR Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
