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Elixir Energy Limited (ASX:EXR)

ALERT: Price-sensitive ASX Announcement for EXR
Current share price for EXR : $0.063 -0.006 (-8.70%)+
Announcement
Release
23 Oct 2026 9:26AM
Price at Release
$0.069
Full Release
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Summary
Elixir Energy Limited (ASX: EXR) announced it has signed definitive agreements with Beach Energy Limited for a strategic farmout of 50% of Elixir’s working interests, and operatorship where applicable, across its Taroom Trough portfolio excluding the Diona-JV sub block, for a total transaction value of $205 million comprising $25 million cash plus a $180 million gross carried four-year exploration and appraisal program; the deal is intended to accelerate derisking, Reserve conversion and progress towards development and production while materially reducing Elixir’s capital requirements and dilution, with Elixir retaining significant exposure through 1,193 km² to 1,202 km² of net Taroom Trough acreage including its operated Diona JV position, while also gaining strategic validation and market expertise from Beach. The carried work program is to include exploration and horizontal appraisal wells, testing and completions, seismic acquisition and processing, geotechnical and geophysical studies, operating costs and preparatory development works, with potential focus areas including Lorelle-4H and Daydream-3/3H following interpretation of Shell 3D seismic. Key terms include an effective date of 22 October 2026, expected completion in 2HFY27, conditions precedent including ministerial approval, ACCC waiver or approval, completion of Elixir’s farm-in to ATP2056 and waiver of pre-emption rights, and post-transaction interests of 25% each for Elixir and Beach in ATP2056 and ATP2057, 50% each in ATP2044 and ATP2077-A/B, while ATP2077 Diona remains unchanged at 49% for Elixir; the parties also entered into an Area of Mutual Interest agreement for future acreage acquisitions and bids, with Beach generally to act as operator.
Key Points
  • Elixir and Beach Energy executed a strategic farmout across Elixir’s Taroom Trough permits excluding the Diona-JV sub block.
  • Total transaction value is $205 million, made up of $25 million cash and a $180 million gross carried appraisal program.
  • Beach will acquire half of Elixir’s working interests and operatorship where applicable across ATP2056, ATP2057, ATP2044 and ATP2077-A/B.
  • Elixir retains its 49% operated interest in ATP2077 Diona and continues to hold significant net acreage in the Taroom Trough.
  • The carried program runs over four years and includes drilling, testing, seismic, geotechnical and geophysical studies, reprocessing and operating costs.
  • The transaction is intended to accelerate derisking, Reserve conversion and the transition toward development and production.
  • Elixir said the deal provides funding certainty for approximately four years and reduces shareholder dilution and capital requirements.
  • The implied valuation equates to about $118,700 per BCFe of net attributable 2C contingent resources acquired by Beach, around 3 times Elixir’s trading and look-through value.
  • Completion is expected in 2HFY27, subject to ministerial approval, ACCC waiver or approval, completion of Elixir’s farm-in to ATP2056 and waiver of pre-emption rights.
  • Elixir and Beach also entered into an Area of Mutual Interest agreement covering future acreage acquisitions and bids, generally with Beach as operator.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.