Key Highlights

  • Elixir has signed definitive agreements to farm out half its Taroom Trough working interests to Beach Energy, excluding the Diona sub block.
  • Consideration is $25 million in cash plus a $180 million gross carried appraisal program, for a total transaction value of $205 million.
  • The appraisal program must be executed over the next four years, and completion is expected in the second half of FY27.
  • Completion is conditional on Ministerial approval, an ACCC waiver or approval, Elixir's ATP2056 farm-in and waiver of pre-emption rights.

Elixir Energy Limited (ASX:EXR) announced on 23 October 2026 that it has executed definitive agreements with Beach Energy Limited to farm out half of its working interests, and operatorship where applicable, across its Taroom Trough permits. The Diona joint venture sub block is excluded. The company put the total transaction value at $205 million.

How the Deal Is Structured

The consideration comprises $25 million in cash and a $180 million gross carried program covering exploration and appraisal drilling, testing, geotechnical and geophysical studies, seismic acquisition and reprocessing, and operating costs. Elixir said its share of the carried activity is $90 million. The program is to be executed within four years, and Beach will fund it at its sole cost.

The farmout is effective from 22 October 2026 and is expected to complete in the second half of FY27. Conditions precedent are Ministerial approval, a waiver or approval from the ACCC, completion of Elixir's farm-in to ATP2056, and waiver of its joint venture partner's pre-emption rights. The farmout does not involve the issue of securities, changes to the board or management, or shareholder approval.

Permit Interests After Completion

Elixir's working interest falls from 50% to 25% in ATP2056 and ATP2057, with Beach taking 25% in each. In ATP2044 and ATP2077-A/B, Elixir moves from 100% to 50%, with Beach holding 50% and operatorship. Elixir keeps its 49% operated interest in the ATP2077 Diona block. The company said it retains 1,193 km2 of net acreage. Beach will join the existing Santos joint ventures at ATP2056 and ATP2057, and new joint ventures will be formed at ATP2044 and ATP2077-A/B.

Why This Could Matter

Elixir said the cash and carried activities are designed to accelerate de-risking of its acreage and support conversion of resources to Reserves ahead of development and production. Management said the transaction provides a funding pathway of about four years and reduces the capital required from shareholders, while Beach's production experience and east coast gas market knowledge are expected to assist the move from appraisal towards development.

The program is expected to follow integration of new Shell 3D seismic across ATP2056 and ATP2077A, which Elixir will use to select appraisal locations that may include Lorelle-4H and Daydream-3/3H. An Area of Mutual Interest agreement also allows either party to purchase newly acquired acreage on a 50:50 basis with Beach as operator, with a 65:35 Beach/Elixir split for acreage bid in future releases.

Final Takeaways

Elixir and Beach have agreed a $205 million farmout of half of Elixir's Taroom Trough interests, covering $25 million in cash and a four-year carried program, subject to regulatory and partner conditions.