Omega Oil and Gas Ltd. has agreed to acquire a 19.43 per cent equity interest in Elixir Energy Ltd. through a two-tranche placement of up to AU$14.6 million.
In the first tranche of the placement, Elixir will issue shares at an issue price of 4.1 cents per share, amounting to AU$13.9 million.
After completion of the first tranche, Omega and Nero Resource Fund have agreed to subscribe for a combined AU$2.68 million. Elixir will issue 48.8 million new shares to Nero Resource Fund to raise AU$2 million and 16.6 million new shares to Omega to raise AU$680,000.
The settlement of new shares in the first tranche is scheduled on December 2, while the settlement of new shares under tranche two will be concluded in January 2026.
Travis Brown, Omega’s CEO, said: “This investment is a further step toward achieving our goal to be the partner of choice in the Taroom Trough, a highly prospective basin we understand well.
“Omega is very favourably positioned with exposure to multiple opportunities across the Taroom Trough, Australia’s most prospective gas and liquids province. Our interest in Elixir provides a low-cost entry into complementary acreage.”
The transaction progresses Omega’s growth strategy and enhances the company’s acreage position in Taroom Trough, which continues to demonstrate significant resource potential.
Omega said the drilling and flow testing of the Lorelle-3 well on the western flank of the Taroom Trough has the potential to be highly impactful. The company has started preparation for the Lorelle-3 horizontal section, scheduled to commence drilling in January 2026.
Elixir CEO Stuart Nicholls said: “Lorelle-3 is set to be a defining well in the evolution of the Taroom Trough and Elixir’s journey, as it may demonstrate that Elixir can convert its huge Contingent Resource position to Reserves via the application of horizontal drilling and multi-stage stimulation.
“The Taroom Trough has the scale to not only adequately service the deteriorating east coast energy market but also keep Queensland’s extremely valuable export industry full for multiple decades to come.”
Elixir will use the funds raised in the placement to pursue reserve definition through horizontal drilling and expanded stimulation work at Lorelle-3 beginning in January 2026.
The company will also conduct stimulation and production testing at the Diona-1 exploration well in March 2026.