Highlights

• Beach agreed to acquire half of the seller's interests across core Taroom Trough permits.

• The company committed AUD 25 million in cash and AUD 90 million in carried costs.

• Beach expected its net Taroom Trough position to reach approximately 1,481 square kilometres.

• The company anticipated an initial contingent resource booking through its FY27 process.

Beach Energy (ASX:BPT) operates in Australia's oil and gas sector and was building its exposure to the Taroom Trough, an emerging resource play in Queensland. Its acreage strategy combined existing non-operated interests with an opportunity to control exploration across additional permits. In the 23 October 2026 announcement, the company outlined a farm-in designed to broaden its position while leaving appraisal, approvals and resource assessment as the next steps.

New Interests Add Scale and Operatorship

The agreements covered a 50% operated interest in ATP 2044 and ATP 2077A-B, together with 25% interests in ATP 2056 and ATP 2057. The latter two interests remained subject to pre-emptive rights.

The proposed acquisition added approximately 1,009 net square kilometres across permits covering 2,859 gross square kilometres. Combined with its existing position, Beach expected to hold approximately 1,481 net square kilometres, or around 366,000 net acres, in the Taroom Trough.

The existing portfolio included a 25% non-operated interest in ATP 2081 and the recently awarded Block 10, intended to become ATP 2082. These interests represented approximately 472 net square kilometres before the new transaction.

Cash and Carry Define the Commitment

The consideration comprised AUD 25 million payable in cash at completion and AUD 90 million covering the seller's share of exploration and appraisal work, including general and administration costs.

The carry would run over approximately four years after completion. Beach retained discretion to define the work program and decide how the carry was deployed, with any unused amount payable to the seller in cash at the end of the farm-in period.

Completion was anticipated in the second half of FY27, subject to regulatory approvals, applicable pre-emptive rights and other conditions. If pre-emption prevented acquisition of an affected interest, the carry would be reduced accordingly.

Appraisal Comes before Resource Conversion

The acreage spans the western flank and central parts of the trough, approximately 20-120 kilometres southeast of the Wallumbilla Gas Hub. The announcement highlighted proximity to established gas infrastructure and onshore services.

The western flank included discovered gas in several reservoir intervals. Beach intended to make an initial 2C contingent resource booking through its FY27 reserves process, rather than treating the transaction announcement as an immediate reserves addition.

The basin remained at an early appraisal stage, with the most prospective areas and horizons still being established. Participation in multiple work programs was intended to broaden the company's geological and operating understanding.

Permit Conditions and Program Choices Remain

An area-of-mutual-interest arrangement provided a framework for participating in additional acreage acquisitions within a defined area during the farm-in period. That arrangement also remained subject to conditions, including existing pre-emptive rights.

The permits carried ongoing work commitments and retention processes, including pending renewal and application matters for identified tenements. The announcement noted that acreage totals could change slightly through those processes.

For the proposed expansion, the unresolved steps were completion, program selection and appraisal results. The acreage position established the scope of exposure; successful testing and formal assessment would determine subsequent resources and development plans.