Omega Oil and Gas (ASX: OMA) has acquired a 19.43% equity interest in Elixir Energy (ASX: EXR) through a $13.9 million placement.
The investment forms the foundation of a broader capital raising that will allow Elixir to accelerate Phase 2 of its Strategic Plan.
Both companies said the transaction strengthens their positions across the Taroom Trough ahead of an intensive 2026 drilling schedule.
Two-Tranche Subscription
The two parties have entered into a subscription agreement under which Omega has subscribed for new shares at $0.041 each.
A second tranche, if it receives shareholder approval, would lift Omega’s total investment to $14.6m alongside a further $2m from Nero Resource Fund.
Elixir said the combined proceeds would lift its estimated pro-forma cash position to about $25 million plus its R&D advance finding.
Omega will be entitled to nominate up to two directors to Elixir’s board while it maintains at least 15% voting power, and a Technical Committee will be established to facilitate information sharing and basin-wide technical collaboration under agreed confidentiality protocols.
Omega has agreed to a 12-month standstill arrangement, with defined exceptions, and will support board recommendations on change-of-control proposals subject to standard due-diligence and expert-report conditions.
Phase 2 Transition
Elixir confirmed the transaction enables the immediate transition into Phase 2 of its Strategic Plan, bringing forward development work by more than twelve months.
Chief executive officer Stuart Nicholls said the investment represents “a moment of recognition and validation for Elixir,” adding that Lorelle-3 “is set to be a defining well in the evolution of the Taroom Trough.”
The company highlighted that the additional funding positions it to pursue reserve definition through horizontal drilling and expanded stimulation work at Lorelle-3 beginning in January 2026.
Elixir will allocate funds to the horizontal section of the Lorelle-3 well for work that will include drilling, multi-stage fracture stimulation, and flow testing.
The company will also conduct stimulation and production testing at Diona-1 and a 200-kilometre 2D seismic program in ATP2057 to progress remaining permit commitments.
Cost-Effective Expansion
Omega described the investment as a cost-effective expansion of its footprint across the Taroom Trough’s western flank.
Chief executive officer Trevor Brown said the transaction is another step toward Omega achieving its goal of “being the partner of choice in the Taroom Trough,” noting that shareholders now have exposure to “a significant near-term exploration catalyst.”
The company said the placement also provides access to data, technical collaboration pathways, and future participation rights as long as specified ownership thresholds are maintained.
Omega will begin executing its own 2026–27 appraisal program in May, supported by exclusive negotiations for multiple firm and optional wells.
Both companies see the Taroom Trough as a key component in servicing the deteriorating east coast energy market.
