Elixir Energy locks in $10M R&D-backed debt facility ahead of high-impact Lorelle-3 well

Core Viewpoint - Elixir Energy Ltd has secured a $10 million debt facility from Endpoints Capital to fund the R&D tax component of its Lorelle-3 appraisal well, providing essential working capital during a critical operational phase [1][4]. Group 1: Debt Facility Details - The debt facility allows Elixir to draw down up to 80% of its estimated FY26 R&D tax refund before actual receipt, addressing cash flow gaps associated with significant well expenditures [4]. - The facility has a straightforward structure, including a 1% drawdown fee and a 15.75% interest rate that capitalizes until repayment, with a hard repayment deadline set for either 28 February 2027 or upon receipt of the R&D refund [5]. - Importantly, the facility does not include any warrants, options, or equity instruments, thus preventing dilution for existing shareholders [5]. Group 2: Lorelle-3 Well Significance - The Lorelle-3 well, located in ATP2056 within the Taroom Trough, is a high-impact appraisal target for Elixir, with drilling recently completed at a depth of 3,580 meters, intersecting multiple Permian hydrocarbon reservoir targets [2]. - The confirmation of total depth is a significant operational milestone, with the focus now shifting to evaluating the intersected intervals [2]. Group 3: R&D Tax Incentive Program - The debt facility is structured around Elixir's Advance Finding from AusIndustry under the Federal Government's R&D Tax Incentive program, awarded in November 2025, covering a three-year period from FY26 to FY28 [3]. - Under this program, up to 48.5% of eligible costs related to the Lorelle-3 program qualify for a refund through the company's tax return, which includes expenses for drilling, coring, logging, analysis, completion, and testing [3][6]. Group 4: Financial Flexibility - The successful application for the AusIndustry Advance Finding and the prequalification of the Lorelle-3 appraisal campaign provides Elixir with the necessary security to borrow against its future R&D refund [6]. - This facility will enhance the company's balance sheet flexibility, ensuring it is well-capitalized until the R&D refund is received as part of the annual tax return process [6].