Elixir Energy confirms Beach Energy deal talks

• Elixir Energy confirmed entering a process deed to explore a potential farm-in deal.
• The announcement followed media reports regarding takeover interest in key gas assets.
• The company aims to negotiate terms while maintaining ownership in Queensland assets.

Elixir Energy (ASX:EXR) responded to media reports by confirming it entered a process deed with Beach Energy (ASX:BPT) to explore a potential strategic farm-in.

The news follows media reports published on Sept. 9 alleging that Beach Energy targeted core gas assets held by the company.

The company gave no assurance that these negotiations will result in any transaction.

Under the agreement executed on Aug. 21, both parties agreed to a period of hard exclusivity and due diligence lasting until Oct. 1.

The company stated that the board will keep shareholders informed of any material developments regarding the negotiations.

Following the announcement, the Elixir Energy share price was up at $0.079.

The business operates as the largest acreage holder in Queensland's Taroom Trough within the Bowen Basin.

In addition to its land holding, the company aims to appraise approximately 3.5 TCF of independently certified 2C contingent gas resources in the region.