Company Information for Elixir Petroleum Limited

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Company Statement

Elixir Petroleum is an international exploration and production company listed on the Australian Stock Exchange (ASX:EXR).

Elixir holds interests in producing gas and condensate fields located in the Gulf of Mexico and has extensive interests in exploration and appraisal licences in the UK North Sea.

The UK North Sea has been targeted by Elixir as a core exploration area based on the view that the UK Continental Shelf remains highly prospective for oil and gas. The area benefits from low political risk, attractive fiscal conditions and established oil and gas infrastructure. In addition, changes to the UK licensing regime in 2003 provided improved access for junior explorers and created the opportunity for Elixir to rapidly build an exciting portfolio with exposure to meaningful exploration and appraisal targets in the region.

Elixir has recently acquired interests in two producing fields in the Gulf of Mexico which provide the group with cashflow from sales of gas and condensate. The company is focused on increasing its presence on the shallow water shelf of the Gulf of Mexico and continues to examine new projects in which to participate. Such projects typically display discovered reserves, nearby infrastructure and short cycle times to first production and cashflow.
 

Operations and Technology

Gulf of Mexico

High Island 
The High Island field is a gas and oil field located in 169 feet of water offshore Texas in the Gulf of Mexico. The field is surrounded by a number of producing fields and associated oil and gas infrastructure.

Oil and gas was discovered and wire line tested in several reservoirs in six wells drilled on the High Island field between 1984 and 1989, but was not produced due to low commodity prices at the time and perceived reservoir continuity risk. All wells were previously drilled on 2D seismic. The acquisition of 3D seismic in 1995, and its modern re-processing in 2004, has allowed the known reservoirs to be individually defined, significantly reducing reservoir continuity risk.

Drilling of the High Island A-1 well was completed in January 2007 and discovered commercial gas in high quality reservoir sands in two separate reservoirs. The High Island A-1 well was cased and temporarily suspended pending the installation of a production platform and pipeline.

The design and fabrication of the High Island HI-268A unmanned production platform and jacket was completed in early June 2007. The installation of the platform commenced in late June and was completed on 7 July 2007. A 5km subsea production pipeline from the HI-268A platform to a regional processing facility was laid by the operator during July 2007.

The High Island A-2 well was successfully drilled and completed in late July 2007. Following the completion of flow testing and pressure build-up activities, the well was placed on production on 15 September 2007. The well was completed over a shallower and deeper horizon. The well is currently only producing from the lower reservoir sands. Once the pressure in these deeper sands naturally depletes through production, the sliding sleeve over the upper sands will be opened and the well flowed from the upper sands.

Pompano
Elixir (through its wholly-owned US subsidiary) has acquired a 25% working interest in the Pompano gas field development and exploration project (“Pompano Project”) located in Brazos Block 446-L SE/4, which is 7 miles offshore the Texas Gulf Coast. The lease holder and operator of the project is a private US company.

The Pompano Project is located in 60 feet of water and has existing production infrastructure, including a platform and two satellite caissons tied back to the platform. The field has pipeline access to intrastate gas markets. Access to this infrastructure will significantly reduce project capital costs and the time required to first production.

The Pompano field ceased production in 1995 after producing 120 billion cubic feet (“BCF”) of gas from Miocene reservoirs in a faulted structural high. The high trend has produced more than 800 BCF of gas from several fields. Similarly to High Island, the field was discovered, explored and, in the case of Pompano, developed with wells based only on 2D seismic data.

Northern UK North Sea

Block 211/12b
Block 211/12b is located in the Northern sector of the UK North Sea, approximately 160 km north east of the Shetland Islands, in a water depth of approximately 185m. The block lies 5km to the east of the Magnus Field which was brought on-stream by BP in 1983 with an in-place volume of approximately 1.5 billion barrels of oil. Block 211/12b was awarded to Elixir in early 2009 and contains a newly mapped prospect named Tiger.

Blocks 211/22b & 211/27d
Block 211/22b, to the east of the Cormorant field (650 million barrels), hosted a large Upper and Middle Jurassic prospect named Jaguar which was tested by the 211/22b-5 well in the first half of 2006. This well was the first test of Elixir's Upper Jurassic play in the Northern North Sea. Although commercial hydrocarbons were not found at this location, the well did intercept residual oil in the Middle Jurassic.

Block 211/18b
Block 211/18b, to the west of the Thistle field (400 million barrels) was awarded on a Traditional licence application. It contains a major prospect, named Leopard in an Upper Jurassic stratigraphic play. Although this Upper Jurassic play has not been extensively pursued in the UK Northern North Sea, an analagous play is proven on the Norwegian side of the median line in the Borg field. The Leopard exploration well is targeting a most likely recoverable resource of approximately 350 million barrels of oil. The well is partially farmed out, with further interested parties currently reviewing the opportunity.

Board of Directors and Key Management

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