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 edging closer to testing "significant hydrocarbon resource" in France
Elixir Petroleum (ASX: EXR) has been methodically proving up prospectivity of its aptly named 100% owned, 5,360 km2 Moselle Permit located onshore in north-eastern France.
Opportunities have been identified by Elixir to to re-enter wells drilled on the Permit in the mid-1990’s. Providing an early opportunity for Elixir to test intervals of conventionally trapped hydrocarbons that may have been overlooked in past exploration activities.
Tellingly, a number of oil majors are moving back into the region.
Elixir will look to farmout the Moselle Permit and has retained an investment bank to assist in the process.
Elixir managing director Andrew Ross said today, "the work completed to date leads us to believe that Moselle has the potential to host a significant hydrocarbon resource, and could over time deliver substantial value to the company and its shareholders."
The Moselle permit is prospective for tight gas, gas shale and conventional oil and gas and represents a huge acreage position for with a working hydrocarbon system, with multiple play potential.
Preliminary work done to date indicates Elixir believes Moselle to be highly prospective for commercial hydrocarbon production from unconventional sources, particularly Carboniferous aged tight gas and shale formations.
Elixir has decided to undertake further technical appraisal ahead of the release of more detailed initial findings and the commencement early in the second half of this year of marketing to industry of a farmout for a significant carried work programme.
There are at least six sub-plays existing within the Moselle Permit. These are a combination of conventionally and unconventionally sourced hydrocarbon plays which Elixir will indiviudally drill and test.
The work programme has been aimed at acquiring, processing and interpreting available well, geological and seismic data located in, and adjacent to, the Permit.
Elixir has assembled a geological database which comprises:
- Detailed reports on over 100 wells located in, and adjacent to, the Permit;
- In excess of 455 kilometres of electric log data from 25 representative wells;
- Over 2,500 line kilometres of unprocessed, digital 2D seismic data;
- Over 530 line kilometres of fully reprocessed and reinterpreted 2D seismic;
- Ground based gravity data over an area of some 28,400 km2;
- Core and cuttings samples from over 2,800 metres of available core sourced from 6 key wells
A forward work program will be determined from the studies.
The studies have however already identified opportunities. When finalised, the integration of the conclusions from these studies will shape the forward work programme on the Permit.
Netherland Sewell & Associates, Inc consulting reserve auditing firm have been retained to provide an independent assessment of the in-place hydrocarbon resources within Moselle.
Managing director Andrew Ross said today the indicative results from the preliminary NSAI work "have been very encouraging."
This has recently led to the identification of an additional conventional play type located within the Carboniferous interval. To better characterise leads in this area associated with conventionally trapped hydrocarbons, Ross said "we have commenced reprocessing a further 464 line kilometres of 2D seismic data. The reprocessing of this dataset is scheduled for completion in late April 2011," he said.
NSAI will then develop their resource estimate for the Moselle Permit. The independent resource report is expected to be finalised prior to the commencement of the farmout process.
Elixir has finalised a process for the selection of a leading global investment bank to provide assistance with a proposed farm out of the Moselle Permit.
Given the further technical work being undertaken by Elixir and the ongoing studies being conducted by the French Government, Elixir’s advice has been to delay the commencement of the marketing campaign for the farm out until early in the second half of 2011.
In early February 2011, the French Government announced its intention to undertake a study into the possible economic, social and environmental impacts of unconventional hydrocarbon resource exploitation within France. The study is similar in nature to a number of studies which are currently being undertaken in other parts of the world in response to the rapid growth of horizontal drilling and fracture stimulation activities associated with unconventional oil and gas exploitation.
Elixir has been travelling under the radar but offers a highly favourable risk and reward equation over the next 6-12 months
