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 reports spudding of Well 3 at Pompano Project
Elixir Petroleum (AIM: ELP, ASX: EXR), the international oil and gas exploration and production company with interests in the Gulf of Mexico, UK North Sea and offshore Sierra Leone, confirmed that the third well to be drilled on the Pompano Project had commenced.
The well was spudded on the 22 September 2008, and is now preparing to commence drilling from a depth of 3,005 feet to approximately 8,000 feet. The well is expected to intersect a number of primary and secondary gas targets.
Elixir Petroleum has a 25% interest in the well, with Buccaneer Energy (65%), Baron Petroleum (7.5%) and Streamline Exploration Inc. (2.5%).
Elixir Petroleum has an interest in two offshore producing fields in the Gulf of Mexico, which together net the company revenue of around US$1m a month. High Island lies some 65km from the coast of Texas in 50m of water while Pompano is in shallower waters of 18m and lies just 7km off the coast.
At High Island, Elixir has a 30% working interest in two wells that are producing around 4.5 million cubic feet of gas per day and 200 barrels of condensate. One of the wells has proved problematic and an intervention is planned to raise production levels. Efforts are continuing to resolve this issue, but both wells are expected to shift to produce from shallower reservoirs in a year or so anyway.
At Pompano, current gross production from two wells is currently around 10 million cubic feet of gas per day and 50 barrels of condensate. An independent reserves review of the first two wells at Pompano showed 2P reserves of 17.1 billion cubic feet of gas and about 50,000 barrels of condensate.
