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EXR

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6.3¢ elixir energy limited

EXR Future out look, page-17

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alexei ii

3,110 Posts.

5926

03/08/20

14:24

Post #: 46266609
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Originally posted by pints: ↑

A few salient quotes from the AR
"As mentioned in last year’s letter, the marketing of any gas produced remains as having many local off-takers available, and if that is not enough, the insatiable Chinese market is only 400 kilometres away to that country’s main gas trunk line, through sparsely populated regions.

An asset of the size of the Nomgon IX PSC provides opportunities to bring in one or more partners. The de-risking that the appraisal process is intended to demonstrate should provide comfort to such parties in subsequent farm-out negotiations with Elixir.

CSG exploration is much less capital intensive than other forms of petroleum exploration and at this stage Elixir is merely creating options over a farm-out campaign rather than foreseeing a requirement that it has to do so.
Forming partnerships does not need to only happen at the field level – and we have demonstrated that this year with the announcement of the execution of a Memorandum of Understanding with Mongolia’s MT Group (one of the country’s largest fuel retailers) over the possible development of a small scale LNG plant".

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Good point made in the AR that you picked up @pints. . The company is also looking to raise money through forward sales or deals relating to locking in future supply of gas...thus taking on more risk, but increasing the reward payout. To do this, it means you have a good handle on the risk you are taking on. Very impressed. DYOR.

Last edited by alexei ii: 03/08/20

EXR Price at posting: 8.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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