Hamilton Locke is pleased to have advised Elixir Energy Limited (ASX: EXR) on its strategic portfolio farmout to Beach Energy Limited (ASX: BPT), under which Elixir and Beach have executed definitive agreements for Beach to acquire half of Elixir’s working interests (plus operatorship where applicable), excluding Elixir’s Diona-JV sub block, across its Taroom Trough permits in Queensland’s Bowen Basin, for a total transaction value of $205 million.
The consideration comprises $25 million in cash and $180 million in gross carried appraisal drilling, geotechnical and geophysical studies, seismic acquisition and reprocessing and operating costs, to be delivered over an appraisal program of up to four years. The transaction provides Elixir with a funding pathway over four years and substantially reduces the Company’s capital requirements, while Elixir retains 1,193 km2 of diversified net acreage and upside across its Taroom Trough portfolio, including its operated position in the Diona-JV sub block.
Commenting on the transaction, Hamilton Locke Partner James Nicholls said: “We are delighted to have advised Elixir on this landmark farmout, which stands as one of the highest valued exploration and appraisal transactions in recent Australian oil and gas history. It has been a pleasure to work closely with the Elixir team and Sternship Advisers in delivering this outcome.”
Hamilton Locke advised Elixir on all legal aspects of the transaction, including the farmout agreements, joint operating agreements and the Area of Mutual Interest agreement entered into with Beach. Elixir was also supported by Sternship Advisers as its financial adviser.
The Hamilton Locke team was led by Partner James Nicholls supported by Senior Associates, Marcus Edwards and Emily Eardley.
