Key Highlights

  • Beach will acquire half of Elixir's core Taroom Trough interests for $25 million cash plus a $90 million exploration and appraisal carry.
  • Post-transaction, Beach expects to hold 1,481 km2 (about 366,000 net acres) in the Taroom Trough, up from 472 km2 net.
  • Beach plans an initial 2C Contingent Resource booking as part of its FY27 reserves process.
  • Completion is anticipated in the second half of FY27, subject to pre-emptive rights, regulatory approvals and other conditions.

Beach Energy Limited (ASX:BPT) announced on 23 October 2026 that it has entered into binding agreements with Elixir Energy Limited (ASX:EXR) and its wholly-owned subsidiaries to farm into Elixir's core acreage in the Taroom Trough, Queensland. Under the transaction, Beach will acquire half of Elixir's core interests, comprising a 50% operated interest in ATP 2044 and ATP 2077A-B and a 25% interest in ATP 2056 and ATP 2057. The agreements are subject to conditions precedent, including regulatory approvals and pre-emptive rights.

Consideration and Farm-In Terms

Beach will pay $25 million in cash on completion, which the company anticipates in the second half of FY27. It will also carry Elixir's share of the exploration and appraisal work program and costs, including general, government and administration expenses, valued at $90 million over an approximate four-year farm-in period following completion. Beach retains full discretion over the works program, and any unspent carry at the end of the period is payable to Elixir in cash.

The package also includes an Area of Mutual Interest arrangement, allowing both parties to participate in additional acreage acquisitions within a defined area of the Taroom Trough during the farm-in period, subject to conditions including existing pre-emptive rights. The operator role for ATP 2044 and ATP 2077A-B is to transition to Beach.

Acreage Position

The acquired acreage spans 2,859 km2 gross across the western flank and central portions of the Taroom Trough, roughly 20 to 120 km southeast of the Wallumbilla Gas Hub. Beach's net share of the acquired permits totals 1,009 km2. Combined with existing holdings of 472 km2 net, including a 25% non-operated interest in ATP 2081, Beach would hold 1,481 km2 net, or about 366,000 net acres.

If the operator exercises pre-emption rights over ATP 2056 or ATP 2057, Beach would not acquire that interest, with a corresponding reduction in the carry for the affected permit.

Why This Could Matter

Beach said the farm-in structure provides low-cost entry while giving it operational control of key acreage, with influence over the scope and prioritisation of exploration and appraisal activity. Elixir previously published an independently certified 2C Contingent Resource estimate of 3.5 Tcfe net, before the Beach farm-in, and Beach intends to make an initial 2C Contingent Resource booking in its FY27 reserves process.

Where Things Stand

The transaction remains conditional, with completion expected in the second half of FY27. Beach will pay $25 million in cash and fund a $90 million carry, lifting its net Taroom Trough position to 1,481 km2.