Transaction highlights:
• Beach to acquire half of Elixir’s core Taroom Trough interests, including a 50% operated interest in ATP 2044 and ATP 2077A-B, and a 25% interest in ATP 2056 and ATP 2057, for consideration of $25 million in cash and $90 million in work program carry including GG&A
• By earning an interest in over 1,000 km2 (~249,300 net acres), Beach will hold a material 1,481 km2 (~366,000 net acres) position in the Taroom Trough
• Initial 2C Contingent Resource booking anticipated as part of the FY27 reserves process
• The transaction delivers a material position in an emerging resource, with potential to meaningfully contribute to Beach’s future resource and reserves base
Beach Energy has entered into binding agreements with Elixir Energy and its wholly-owned subsidiaries, to farm-in to its core acreage in the Taroom Trough, Queensland, subject to conditions precedent, including regulatory and other approvals including pre-emptive rights for interests in ATP 2056 and ATP 2057.
The Transaction builds on Beach’s existing Taroom Trough position, which includes a 25% non-operated interest in ATP 2081 and the recently awarded Block 10 (to be renamed ATP 2082), representing 1,888 km2 gross acreage (472 km2 net to Beach). Completion of the Transaction will establish Beach as one of the largest acreage holders in the Taroom Trough.
Transaction overview
Under the Transaction, Beach will acquire half of Elixir’s core Taroom Trough acreage for the following consideration, comprising:
- $25 million cash payment payable on Transaction completion, anticipated in H2 FY27;
- Carry of Elixir’s share of the exploration and appraisal work program and costs (including GG&A) of $90 million, over an approximate four-year farm-in period following completion, with Beach retaining full discretion to define the works program and determine how carry is deployed (with any unspent carry at the end of the farm-in period payable to Elixir in cash);
- An Area of Mutual Interest (AMI) arrangement, enabling both parties to participate in additional acreage acquisitions withing a defined area of the Taroom Trough during the farm-in period, subject to conditions including existing pre-emptive rights
The Transaction is expected to complete in H2 FY27 and is subject to pre-emptive rights for interests in ATP2056 and ATP2057, receipt of customary regulatory approvals and other conditions.
Acreage overview
The current acreage acquired spans 2,859 km2 (gross) across the western flank and central portions of the Taroom Trough, approximately 20-120 km southeast of the Wallumbilla Gas Hub in Queensland, Australia. It is well positioned near critical East Coast gas market infrastructure, with established supply lines and a capable services sector providing efficient routes to market. The acreage also benefits from a supportive Queensland Government committed to investment, stakeholder collaboration and efficient resource development, reinforcing its alignment with Beach’s disciplined investment criteria.
The western flank includes substantial discovered gas resources in the Tinowon (Dunk), Overstone and Lorelle reservoirs, in part the subject of recent successful drilling and extended well testing in Shell’s ATP 645/PCA 305. Elixir previously reported an independently certified third-party view of 2C Contingent Resources of ~3.5 Tcfe net (prior to Beach farm-in), highlighting the potential within the acreage. Beach intends to make an initial 2C Contingent Resource booking as part of its FY27 reserves process. A summary of the acreage is outlined below.
Strategically, the farm-in structure enables a low-cost entry, while also providing Beach with operational control of key Taroom Trough acreage; enabling significant influence over scope and prioritisation of exploration and appraisal activity while maintaining Beach’s disciplined approach to capital allocation.
Beach’s deep technical and operational capabilities position the joint venture for success. The company will utilise its strengths to efficiently and effectively appraise the acreage within a supportive Queensland onshore jurisdiction, where the Government has clearly demonstrated support for the resource sector. Beach is pleased to be working with Elixir, who was one of the first operators to identify the play, and who share similar focus, cost discipline and priority in moving the project forward.
Beach Energy Managing Director and Chief Executive Officer, Brett Woods, said: 'The new partnership with Elixir represents a compelling opportunity to secure a material, operated position in the Taroom Trough, an emerging resource play within an established oil and gas production province. It offers significant running room for future resource and reserves growth.
“Elixir had previously published an independently certified 2C Contingent Resource estimate of 3.5 Tcfe (net) which spans the stacked plays across the acreage. Alongside other published resource estimates, it highlights the multi-Tcf potential already recognised in the Taroom Trough.
'This Transaction complements our existing acreage under the Omega-led joint venture; but strategically diversifies and expands our exposure. With appraisal of the basin still at an early stage, and industry yet to establish the most prospective regions or horizons, Beach has sought to broaden its exposure and enable accelerated learnings from participation in multiple Taroom Trough works programs,' Mr Woods said.
Source: Beach Energy
