Team Veye October 23, 2026

Elixir Energy strikes a $205 million deal with Beach Energy to accelerate development

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Elixir Energy Limited (ASX: EXR) announced a strategic portfolio farmout agreement with Beach Energy Limited on 23 October 2026 which covers half of its working interests and operatorship where applicable across its Taroom Trough permits in Queensland.

The transaction is valued at $205 million in total and comprises $25 million in cash alongside a $180 million gross carried exploration and appraisal programme funded by Beach Energy.

The agreement will give a potential four-year funding pathway for Elixir because Beach Energy will fund the programme while significantly reducing the capital Elixir must contribute to exploration and appraisal work as well as operating activities. The funded programme will include exploration and appraisal drilling alongside well testing and seismic acquisition and processing as well as geological studies and other work required to assess the commercial potential of the gas resources.

These activities aim to reduce geological and development uncertainties while helping convert contingent resources into reserves and accelerating the path towards commercial production.

Beach Energy’s involvement will also provide important third-party validation of the scale and quality of Elixir’s Taroom Trough portfolio while adding experience in Australian gas production and east coast gas markets.

The company stated in its announcement that the transaction implies a value for its 2C contingent gas resources which is approximately three times their current trading value.

Elixir’s strategy is to advance its independently assessed multi-trillion-cubic-foot gas resource base towards reserves before proceeding to development and production.

The Taroom Trough has a strategic location near the Wallumbilla Gas Hub and multiple gas pipelines as well as approximately 25 million tonnes per annum of liquefied natural gas export capacity near Gladstone.

Elixir intends to assess drilling opportunities with the help of new 3D seismic data and potential targets include the Lorelle-4H and Daydream-3/3H wells subject to further technical assessment and Beach Energy’s decisions.

The companies have also signed an area of mutual interest agreement which sets out arrangements for participation in certain newly acquired acreage and could support further collaboration across the region while completion of the farmout is expected in the second half of FY2027.

(Source: Company Announcements)

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