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 Petroleum to raise A$14.5 million
The funds will be used to fund Elixir's 25% interest in the Pompano Gas Project in the Gulf of Mexico, where after several successful drill results this year, and accelerated drilling program is on the cards. Additionally, Elixir said it required additional funds to advance its 35% working interest in Block SL-4, offshore Sierra Leone and to provide "greater flexibility" in the company's desire to participate in the 25th Round North Sea block allocation. North Sea license applications require the submitting company to prove that it can fund work on a licence, hence the need for a robust balance sheet. Finally, the company also hinted that it was looking at other opportunities in the Gulf of Mexico, and would require funds for farm-ins.
Elixir's Chairman, Jon Stewart said:
"This financing will help the Company meet a number of strategic and operating objectives. It is management's intention to use Elixir's new balance sheet strength, together with its growing cashflow from production, to take advantage of existing opportunities within its portfolio and to aggressively pursue other new projects."
