ASX energy share Elixir Energy Ltd (ASX: EXR) has been making its longer-term stockholders very happy of late.
How happy?
Well, a year ago, you could have picked up Elixir Energy shares at an intraday low of 2.9 cents each.
In afternoon trade on Wednesday, those same shares were changing hands for 11.5 cents apiece. That sees the ASX energy shares up a whopping 296.6% over the past 12 months.
Or enough to turn a $10,000 investment into $39,655.
To put that performance into some context, the S&P/ASX Small Ordinaries Index (ASX: XSO) is up 8.7% since this time last year.
And according to the team at Euroz Hartleys, Elixir Energy – which counts as the largest acreage holder in the Taroom Trough, located in Queensland's Bowen Basin – is well placed to keep charging higher in the months ahead.
Here's why.
ASX energy share tapping into Queensland's gas riches
On 18 May, Elixir Energy released an update on the flow testing operations of its Diona-1 exploration well in the Bowen Basin.
The ASX energy shares said the tests from the well proved a recoverable gas and condensate resource, an over pressured system, and low impurity hydrocarbon composition.
Commenting on the results, Elixir Energy CEO Stuart Nicholls said:
This unoptimised vertical exploration well continues to show encouraging results and flows which may improve significantly once back pressure is reduced sufficiently from the remaining stimulation fluids.
Given the proximity to the pipeline, it is worth persisting in pursuit of this objective whilst working on the booking of a new Contingent Resource which reflects the success of the campaign to date.
Euroz Hartley said Elixir's update was "broadly positive".
"We view this as a constructive update for EXR, but not yet a commercial flow-rate outcome," the broker said.
Euroz Hartley noted:
The main near-term catalyst remains EXR's Lorelle-3H flow test, which sits in the core Taroom Trough fairway and is expected to use an optimised horizontal well and frac design, consistent with Shell's approach next door.
As for last week's Diona-1 well update, the broker said:
The key positive from this announcement is that Diona appears to extend the Taroom Trough play beyond where it was previously considered to sit, increasing the project's strategic relevance and potential resource footprint.
The inclusion of the Diona sub-block increases the Taroom Trough acreage position by a further net 184km2 / 45k acres, taking the total position to 548k net acres and representing a basin-leading position within the Taroom Trough.
Connecting the dots, the broker maintained its speculative buy rating on the ASX energy share with a price target of 28 cents a share.
That represents a potential upside of more than 143% from Elixir Energy's share price on Wednesday afternoon.
The post This ASX energy share has rocketed 297% in a year. Here's why it's forecast to more than double your money again appeared first on The Motley Fool Australia.
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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