Omega Oil and Gas Ltd has executed a binding agreement to acquire a 19.43 percent equity interest in Elixir Energy Limited through a strategic investment totalling up to $14.6 million, significantly expanding its presence in Queensland’s Taroom Trough.
The acquisition comprises two placement tranches at an issue price of $0.041 per share. The unconditional Tranche 1 Placement amounts to $13.9 million and will be settled on December 2, 2025, utilising Elixir’s existing placement capacity without requiring shareholder approval.
A conditional Tranche 2 Placement will see Omega invest an additional $0.68 million, alongside Nero Resource Fund’s $2 million investment, to maintain Omega’s 19.43 percent interest. This tranche is subject to Elixir shareholder approval at an extraordinary general meeting expected in January 2026.
The investment grants Omega significant governance and participation rights, including the ability to nominate up to two directors to Elixir’s board, provided Omega maintains at least 15 percent voting power. Additional rights include representation on a technical committee, equity participation rights in future capital raisings (subject to maintaining 10 percent shareholding), and secondee rights to support Elixir’s operational execution.
Omega’s investment will fund horizontal drilling activities at the Lorelle-3 well on ATP 2056, scheduled to commence in January 2026. The horizontal section has the potential to deliver significant value uplift, with horizontal wells having demonstrated effectiveness in unlocking the potential of unconventional oil and gas-bearing sands in the Taroom Trough. Omega brings highly relevant operating experience from its own wells to support this activity.
Under the placement terms, Omega can request Elixir to execute the Lorelle-3 horizontal section by February 1, 2026, with funds specifically earmarked for horizontal well activities, fracture stimulation, flow testing, and permit work commitments.
The transaction provides Omega with cost-effective exposure to the western flank of the Taroom Trough, complementing its 100 percent ownership of the Canyon Project on the eastern flank. Omega now holds exposure to multiple play types across both flanks of the basin, all scheduled for drilling activities during 2026.
Trevor Brown, Omega’s chief executive officer and managing director, emphasised the strategic value: “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 onshore gas and liquids province. Our interest in Elixir provides a low-cost entry into complementary acreage. With the Lorelle-3 well planned for early 2026, Omega shareholders gain exposure to a significant near-term exploration catalyst.”
Following the transaction, Omega remains well capitalised with access to over $55 million in available funds to support its 2026/27 Canyon Project appraisal and growth programme. The company is in exclusive negotiations with H&P for three firm wells and four optional wells scheduled to commence in May 2026.
Omega’s core focus remains the 100 percent owned Canyon Project on the eastern flank of the Taroom Trough. The extensive 2026/27 appraisal programme targets the unconventional Permian play comprising five reservoir layers—one tested and four untested—with planning well underway for vertical wells and multiple potential horizontal sections.
The transaction positions Omega to capitalise on increasing drilling activity across the Taroom Trough, with the next 12 to 18 months expected to be pivotal for demonstrating the basin’s significant resource potential.
For more information visit www.omegaoilandgas.com.au
