Elixir Energy: The Second Mouse Gets The Cheese

New CEO's Bold Plan for the Taroom Trough While Saying Goodbye to Mongolia

May 17, 2025

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Disclaimer: I own shares of Elixir Energy and stand to benefit if they rise in price. I may decide to purchase or sell shares at any time without prior notice. Do your own research and size positions appropriately if you invest. Nothing here is meant to be understood as investment or financial advice.

TL;DR

Under new CEO Stuart Nicholls, Elixir Energy has pivoted to focus exclusively on its Australian Taroom Trough assets while effectively selling its Mongolian assets at seemingly fire-sale prices. The three-phase strategic plan aims to transform contingent resources into reserves by leveraging Shell's neighboring activities and minimizing dilution through selective farm-outs. With funding secured for Phase 1 and a 30% reduction in operating costs targeted, Elixir appears positioned to benefit from "read-across" of Shell's findings. While the Mongolian exit is disappointing, the company's sharpened focus on capital efficiency and proximity to infrastructure makes the path to production more credible than before.

baked bread — Photo by Alexander Maasch on Unsplash

At the same time, wishing I could learn
All this paper that I earned
The first bird gets the worm
The second mouse gets the cheese, trust

Source: “What Am I to Do”, Ezra Collective

Introduction

In April 2025, Elixir Energy welcomed new CEO Stuart Nicholls, who quickly implemented a strategic overhaul aimed at transforming the company from an explorer to a producer. Beyond the cosmetic changes to the company logo and color scheme lies a substantive pivot in strategy: doubling down on the Australian Taroom Trough assets while divesting from Mongolia at what appears to be fire-sale prices.

Nicholls, who previously led Strike Energy to first production, brings production-focused credibility to Elixir at a critical juncture. With neighboring energy giant Shell actively investing in the same geological formation, Elixir is positioning itself as the "second mouse" - letting others absorb the initial risks and costs of proving the basin's commercial viability before strategically following in their footsteps.

In this analysis, I discuss the company's new direction, highlighting both the promising aspects of their capital-efficient approach to the Taroom Trough and my concerns regarding the heavily discounted exit from Mongolia. For reference and additional context, please refer to my last article: