www.elixirpetroleum.com
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. 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.
Elixir sees solid progress in Gulf of Mexico
An independent reserve report on the Pompano Project, where Elixir has a 25% interest, subject to a 5.5% back in arrangement with the operator, attributed a 2P reserve of 17.1 billion cubic feet of gas and 50,000 barrels of condensate for Well 1 & 2. Elixir recently received its first sales proceeds from production at Pompano, where production is currently ahead of expectations at a combined rate of 16MMscf of gas per day and 60 barrels of condensate per day. Elixir's net production is around 2.9MMscf per day and 11 barrels of condensate per day.
Also in the Gulf of Mexico, a increased production from Well A-1 on the High Island Field is expected shortly, once the upper sliding sleeves are opened over the C Sand reservoir.
Elixir's bigger, more high risk projects in the North Sea and West Africa also bolstered shareholder sentiment. The Company confirmed that it would participate in the 25th UK licensing round this summer, and in Sierra Leone, 60% of a 3D seismic survey over Block SL-4 was now complete with the remainder on schedule to be finished by June.
"We are extremely pleased with the result of the reserves certification for the first two wells at Pompano, which was ahead of expectation and gives added confidence for future wells. We are looking forward to steadily increasing cash flow from our operations in the Gulf of Mexico through the second half of 2008 and to further activity across our entire portfolio of interests" Elixir's Managing Director, Andrew Ross said.
