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 receives four month extension on Leopard Prospect
ASX and AIM listed oil and gas junior, Elixir Petroleum, received a boost this morning, confirming that it had received a four month extension on the terms of its Block 211/18b licence, often referred to as the Leopard Prospect. The UK Department of Energy and Climate Change has agreed to extend the licence to 21 April 2008.
Elixir said the additional time would allow it complete the farm-out of the unfunded portion of the proposed Leopard well, which has a mean prospective resource estimate of around 350 million barrels, making it one of the largest untested prospects in the UK North Sea.
Elixir's Managing Director, Andrew Ross said the extension was good news for the company:
'The granting of an extension is good news and will assist in our efforts to secure a further partner in the short term to assist us with the drilling of the Leopard Prospect in 2009.'
'We noted with interest the result of the recent Cladhan well drilled in the northern North Sea which also targeted Upper Jurassic sandstones in a stratigraphically controlled play type, similar to the Leopard Prospect. It has been reported the Cladhan well discovered a 34m oil column and that the reservoir has excellent interpreted porosity and permeability. We are confident the Cladhan discovery proves the viability of Upper Jurassic plays in the northern North Sea and significantly de-risks the Leopard Prospect. We believe that the Cladhan discovery, together with the updated geobody studies undertaken by Elixir in the second half of 2008, has further upgraded the Leopard Prospect.'
'Furthermore, the current financial market crisis and commodity price falls is somewhat of a mixed blessing in this case. We recognise deals are harder to close, but with companies currently reducing their drilling activities in the North Sea, rig slots have become available in 2009 and rig rates have fallen significantly. '
