Omega’s Taroom Trough Bet Hinges on Elixir Shareholder Approval and Drilling Success

Strategic Expansion in the Taroom Trough

Omega Oil and Gas has taken a decisive step to deepen its presence in the Taroom Trough, a highly prospective onshore gas and liquids basin in Queensland’s Bowen Basin, by acquiring a 19.43% equity interest in Elixir Energy Limited. The $13.9 million investment, executed through a placement of new shares at $0.041 each, positions Omega as a significant stakeholder in Elixir, complementing its existing acreage on the eastern flank of the basin.

This move is more than a simple capital injection; it grants Omega substantial governance influence, including the right to nominate up to two directors on Elixir’s board, participate in a newly formed technical committee, and maintain rights to future capital raisings. These provisions underscore Omega’s ambition to be a key industry partner in the Taroom Trough, leveraging synergies across both companies’ assets.

Near-Term Catalysts and Operational Synergies

The timing of this acquisition is particularly strategic. Elixir is preparing to drill the Lorelle-3 well’s horizontal section in January 2026, a critical exploration activity that could unlock significant value. Horizontal wells have proven effective in this basin’s unconventional oil and gas sands, and Omega’s operational experience with similar wells enhances its ability to contribute meaningfully to this effort.

Funds raised through the placement are earmarked specifically for the Lorelle-3 horizontal drilling, fracture stimulation, flow testing, and other permit commitments. This targeted use of capital reflects a disciplined approach to value creation, with Omega’s investment directly supporting activities that could materially advance understanding and commercialisation of the basin’s resources.

Broader Growth Strategy and Financial Strength

While this investment broadens Omega’s footprint on the western flank of the Taroom Trough, the company’s core focus remains its 100% owned Canyon Project on the eastern flank. Omega is gearing up for an extensive 2026/27 appraisal drilling program, including at least three vertical wells and multiple horizontal follow-ups, with drilling operations expected to commence in May 2026.

Importantly, Omega retains a robust balance sheet post-transaction, with over $55 million available to fund its growth initiatives. The conditional second tranche of $0.68 million, subject to Elixir shareholder approval in January 2026, will allow Omega to maintain its 19.43% stake, further cementing its strategic position.

Looking Ahead

Omega’s acquisition of a significant stake in Elixir Energy is a clear signal of confidence in the Taroom Trough’s potential. The coming months will be pivotal, with drilling results from Lorelle-3 and progress on Omega’s Canyon Project likely to shape the company’s trajectory and influence investor sentiment. By combining capital, operational expertise, and governance influence, Omega is positioning itself at the forefront of Queensland’s evolving energy landscape.