Winners and Losers: Beach and Elixir rise on multimillion dollar deal
Two of South Australia’s top resources firms are in a multimillion-dollar deal for control of a Queensland gas project.
South Australian oil and gas companies Beach Energy and Elixir Energy were among the biggest stock market risers last week amid rising oil prices and a major new deal.
Oil prices spiked to five-month highs this week, buoying the businesses, which rose by 8.05 per cent and 15 per cent respectively over the trading week.
But it was a a big-dollar deal at the end of the week that was the headline news for Beach Energy – SA’s sixth-largest company according to the InDaily SA Business Index.
On Friday, Beach announced it would buy half of fellow Adelaide-based Elixir Energy’s Taroom Trough interests for $25 million.
The Taroom Trough project in Queensland is yet to kick off but is a large-scale gas opportunity for Beach.
“The new partnership with Elixir represents a compelling opportunity to secure a material, operated position in the Taroom Trough, and emerging resource play within an established oil and gas production province,” Beach CEO Brett Woods said.
The rise in the Beach share price pushed the value of the company back up above $2 billion by the close of trade on Friday.
Meanwhile, the impact of deteriorating investor interest in artificial intelligence took a hammer to SA-based Fortifai.
Its shares collapsed by 36.26 per cent over the week, putting it firmly at the top of the Losers pile.
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On the other side of the scale, Amplitude also rode the oil bump by 5.26 per cent, putting it in the Winners list.
The full list of Winners and Losers for the week ending October 23:
Data via Baker Young Limited analysts.
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