Key Highlights

  • Elixir Energy agreed to farm out half of its working interests and operatorship across its Taroom Trough portfolio in Queensland to Beach Energy.
  • The company states the headline value is A$205 million, comprising A$25 million in cash and a carried work program of A$180 million.
  • Completion is expected in the second half of the 2027 financial year and depends on four conditions, with no Shareholder approval required.

Elixir Energy Limited (ASX:EXR) told the ASX that, through wholly owned subsidiaries, it has agreed to farm out half of its working interests and operatorship across its Taroom Trough portfolio in Queensland to Beach Energy Limited (ASX: BPT). The agreement took effect on 22 October 2026 and was announced on 23 October. The Diona joint venture sub-block, ATP2077 Diona, is excluded.

The company states the headline value at A$205 million. That comprises A$25 million in cash payable on completion and a carried work program of A$180 million of gross expenditure, including operating costs. Beach would fund a fully carried appraisal program within four years, subject to the A$180 million gross cap.

Carried work includes exploration and appraisal drilling, Well Completion and testing (including new lateral wells), geological, geotechnical and geophysical studies, 2D and 3D seismic Acquisition and processing, operating costs and preparatory development works.

Permit interests after the transaction

Elixir would hold 25 per cent in each of ATP2056 and ATP2057, down from 50 per cent, with Beach taking the other 25 per cent in each. In ATP2044, Elixir's interest would fall from 100 per cent to 50 per cent, and in ATP2077-A/B from 100 per cent to 50 per cent. Beach would become operator of ATP2044 and ATP2077-A/B. Elixir keeps its 49 per cent in ATP2077 Diona.

Beach would join the existing ATP2056 and ATP2057 joint ventures with Santos, and new joint ventures would be formed for the other two permits. An area of mutual interest would let either party buy into new acreage acquired by the other, on a 50:50 basis with Beach as operator, while new acreage bid in upcoming releases would be owned 65:35 by Beach and Elixir respectively.

Drilling plans and resource context

Elixir expects to use new Shell 3D seismic over ATP2056 and ATP2077A to select appraisal locations. Candidates named include Lorelle-4H, in the gas-charged Lorelle Sandstone, and Daydream-3/3H on Shell's eastern border. Well locations, design and targets would be at Beach's discretion in engagement with Elixir.

Elixir says the deal implies a value of about A$118,700 per billion cubic feet equivalent (BCFe) of its 2C contingent gas resources, compared with about A$39,888 per BCFe implied by its market value. These are the company's own calculations, and the announcement uses different resource bases for the two figures, roughly 1,728 BCFe and 3,455 BCFe. The resources were audited by Sproule ERCE with an effective date of 5 November 2025. They are contingent, un-risked and classed as development unclarified, and there is no certainty that they are economically viable.

Conditions and balance sheet

Completion is expected in the second half of the 2027 financial year and depends on four conditions: ministerial approval, a Waiver or approval from the Australian Competition and Consumer Commission, completion of Elixir's farm-in to ATP2056, and waiver of its joint venture partner's pre-emption rights. Shareholder approval is not required, no securities are being issued, and there are no changes to the board or management.

Elixir states that it would retain roughly 1,193 to 1,202 square kilometres of net Taroom Trough acreage, with the announcement giving both figures in different places. The company says the transaction funds its corporate and operational needs for about four years. At the time of the announcement it cited roughly A$5.0 million in cash, no Debt and about 1,997.3 million shares on issue.

What comes next

Elixir Energy (ASX:EXR) stated next steps are the satisfaction of the conditions precedent and completion, targeted for the second half of FY27. Appraisal drilling locations are yet to be finalised, and the carried program must be completed within four years of the agreement, with locations to be selected using the new Shell seismic.