Elixir Energy Limited, an Australia-based energy company, has recently been shades in the financial market due to the trading halt imposed on its shares on the Australia Securities Exchange (ASX). Elixir Energy Limited deals primarily in the discovery and development of gas, particularly coalbed methane (CBM), a clean form of energy, within the vast land of Mongolia.
The primary purpose of the trading halt, according to representatives at Elixir Energy, is to ease the process of finalizing and announcing a materially significant capital raising. A capital raising is essentially an exercise where the company seeks to accumulate funds from various sources. These can encompass issuing new shares, selling assets, or borrowing. The proceeds will serve to expand Elixir’s operations or revamp the current strategies shaping its business model.
In this scenario, the capital raising is set to fund an ambitious drilling campaign right in the heart of Mongolia, which the company believes carries great potential for gas extraction in the future. The undertaking is projected to include drilling multiple wells with the aim of testing and subsequently exploiting the resource potential.
At the commencement of this trading halt, Elixir Energy informed investors that the halt’s duration would not exceed two business days, abiding by the rules set forth by ASX. Elixir Energy’s suspension from official quotation is in line with ASX Listing Rule 17.1, explained further in Guidance Note 16 of the ASX’s official documentation which provides for such temporary halts on request by a listed entity, providing clear and precise boundaries to protect shareholders and investors at large.
In previous news, Elixir Energy had reported a significant breakthrough, hailed as “Mongolia’s first gas discovery’, in the Nomgon IX CBM PSC. The company has successfully achieved flow rates from its first well. The management of Elixir Energy sees this as a pivotal moment in their endeavor to discover a significant gas resource in Mongolia’s Gobi Desert.
Elixir Energy is set to resume its willingness to tread in markets credited with mitigating the effects of climate change. Coalbed Methane, Elixir Energy’s gas of choice, is considered cleaner and more sustainable than its counterparts, supporting the global shift towards cleaner energy solutions. This falls in line with Elixir’s commitment to creating value not just economically, but also environmentally.
In its ambition to explore Mongolia’s vast resources, Elixir is on its path to create a revolution in the energy sector. Once the trading halt is uplifted, investors can expect to witness the energy player striving to make headway in expanding its Mongolia operations. The halt emphasizes Elixir Energy’s strategy to pursue operational expansion and financial stability by careful strategy planning and execution. Thus, this move opens new chapters for the energy giant, Elixir Energy, in its quest for sustainable and clean energy.