Elixir Energy and Beach Energy execute $205M deal

• Elixir Energy signed a farmout agreement with Beach Energy valued at $205 million.
• The deal includes $25 million in cash and $180 million in carried appraisal expenditure.
• The transaction aims to accelerate appraisal and derisking of Elixir Energy's gas acreage.

Elixir Energy (ASX:EXR) signed definitive agreements with Beach Energy (ASX:BPT) for a strategic portfolio farmout across its Taroom Trough permits valued at $205 million.

The agreement follows the expiration of initial exclusivity terms earlier in the month, after which both parties continued negotiations to finalise the deal.

"This farmout is one of the highest valued exploration and appraisal deals in recent Australian oil and gas history and values the company’s resources 3x higher than their current trading value," stated Elixir Energy.

Under the terms, Beach Energy will acquire half of Elixir Energy's working interests by providing $25 million in cash alongside $180 million in gross carried appraisal drilling, studies, seismic acquisition, and operating costs.

Following the announcement, the Elixir Energy share price was up at $0.074.

Elixir Energy focuses on natural gas exploration and development projects, holding significant net acreage positions across Australia's Taroom Trough region.

The company recently conducted appraisal operations at its Grandis project, including testing flowing gas from the Lorelle-3H well.