- 01Beach takes half of Elixir’s Taroom gas assets in $205m deal.
- 02$25m cash; $180m funded four-year program.
- 03Diona excluded; close due H2 FY27, subject to approval.
Elixir Energy (ASX: EXR) has struck a $205 million farm-out agreement with Beach Energy (ASX: BPT) covering half its working interests across much of its Taroom Trough gas portfolio in Queensland.
The transaction comprises $25m in cash, along with a $180m gross exploration and appraisal program funded by Beach over four years, including operating costs.
For Elixir, the carried component represents $90m of expenditure attributable to its interests, reducing its funding burden while preserving exposure to future discoveries and development.
The binding agreement excludes the Diona joint venture sub-block and remains subject to regulatory and other conditions, with completion expected in the second half of the 2027 financial year.
Elixir considers Beach’s Australian gas operating and east coast marketing experience important to its longer-term plans in the Taroom Trough.
Four-Year Appraisal Program
Beach will fund drilling, well completions and testing, seismic acquisition and processing, geological studies and preparatory development work under the agreed program.
Elixir intends to use 3D seismic data acquired by Shell across ATP2056 and ATP2077A to help identify near-term drilling targets.
Potential targets include a horizontal appraisal well in the gas-charged Lorelle Sandstone and further Daydream drilling near Shell’s adjoining activity, wiyh well choices subject to Beach’s discretion and consultation.
The partners aim to strengthen the geological and production evidence needed to convert contingent resources into reserves before considering development and commercial production.
Existing contingent resources are classified as development unclarified and remain unrisked for development, with no certainty that any portion can be produced economically.
Interests and Completion Conditions
Following completion, Elixir’s working interests in ATP2056 and ATP2057 will each fall from 50% to 25%, while Beach acquires corresponding 25% stakes.
Elixir’s holdings in ATP2044 and ATP2077A/B will each move from 100% to 50%, with Beach assuming the other half and operatorship of those permits.
The separate Diona sub-block in ATP2077 will remain outside the transaction, leaving Elixir with its existing 49% working interest and operatorship.
Completion requires ministerial approval, Australian Competition and Consumer Commission approval or waiver, completion of Elixir’s ATP2056 farm-in and resolution of joint venture pre-emption rights.
No Elixir shares will be issued under the agreement, which does not require shareholder approval or involve changes to its board or management.
Mutual Interest Arrangement
Beach will join Elixir and Santos (ASX: STO) in the ATP2056 and ATP2057 joint ventures, with new joint venture structures established for ATP2044 and ATP2077A/B.
The parties have agreed an area of mutual interest arrangement allowing participation in certain newly acquired acreage on a 50:50 basis, with Beach acting as operator.
For future acreage-release bids, the non-bidding party can participate on a 65:35 Beach-to-Elixir ownership basis under the agreed terms.
“This transaction gives us the capital, partners, and appraisal program to accelerate that journey while maintaining substantial exposure for our shareholders to the ultimate value of the Taroom Trough,” managing director Stuart Nicholls said.
“By partnering with Beach, we are accelerating the pathway to development and commercial production, positioning our assets to capitalise on the increasingly strategic value of natural gas in a tightening global market.”
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