Elixir Petroleum

AIM EPIC : ELP

(ASX EPIC : EXR)

Web Site : http://www.elixirpetroleum.com/

Elixir Petroleum Limited is an Australian company with a focused strategy of North Sea Exploration. The company is listed on the Australian Stock Exchange (ASX) and on the London AIM market
Elixir believes that the United Kingdom Continental Shelf region of the North Sea (UKCS) remains highly prospective for oil and gas exploration. The area also benefits from low political risk, relatively attractive fiscal conditions and established oil and gas infrastructure. Changes to the licensing regime in 2003 provided improved access for junior explorers. They created the opportunity for Elixir to rapidly build a portfolio with exposure to meaningful and prospective targets in the region.
The company listed in Australia in July 2004 with interests in one UK Licence covering Block 21/6b. Interests in five further UK licences were added in September 2004 as a result of the 22nd UK Licensing Round. One further licence was acquired in December 2004. Elixir has interests in 6 licences being awarded in the 23rd UK Licensing Round. This addition takes Elixir's portfolio to interests in 13 UK exploration licences covering 18 North Sea blocks.
Elixirs primary objective is to establish a successful North Sea focused oil and gas exploration and production business. This will be achieved through advancing exploration of prospects on its existing Licences, attracting farm-in partners for drilling wells on these prospects, progressing any discoveries to commercial production and aggressively pursuing opportunities to acquire further interests in prospective North Sea acreage.
The company is targeting participation in a minimum of five exploration wells over the two years from May 2005. With the best five prospects having an average success case reserves potential greater than 20 million barrels of oil net to Elixir, a discovery would have a material benefit to the company.
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** As with all O+G exploration, there is considerable risk involved, so not for widows or orphans !!
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Oz chart for Elixir (ASX:EXR)

A good post on the Jaguar prospect from Edgein.

Edgein - 23 Feb'06 - 09:29 -


Firstly,

What struck me with ELP was the fact that on a $15m North Sea well they are getting free carried for 32.5%. That's a hell of a free carry by many a standard. They are paying out 7.5% of this well, a mere $1.1m usd. The downside in financial terms isn't that great they have at least $8m usd in the kitty. The upsuide on a 400mmbbls is stratospheric (north sea light has an undeveloped value of $13bbl in the ground)

Jaguar is a better play for me than Leopard or Panther, some in the broker note sugest that Leopard is a bit safer. Most of tme north sea oil finds are in the Brent, Piper or Forties sandstone layers (all of the notable ones have Nelson, Brent, Forties etc). We are well positioned in Jaguar on a north sea oil fairway running from south to slightly north west. Most of the major defined structural closures have been appraised in the NS, but it has been suggested that there are a number of signifncant strat traps still to be encountered. The search for the higher risk strat traps has really only just begun with Buzzard and Oilexco's smaller Brenda field. I got into the appraisal of the Brenda strat trap purely on their seismic shots. They had rund AVO analysis and 4D depth migration and I liked the look of what they had.

PDF Link

If you look at the above PDF you will see that there have been successful wells on 4 sides of Jaguar. Its a strat trap there isn't four way closure, its on an oil migratory pathway (oil fairway) in the NS. Those 2 single wells probably have a fault line (probably not continuous) likely to have been oil structures to have been deemed too small at the time. Brenda one one such, abandoned by connoco, and turned OIL from a 30m market cap to ober 200m (luckily I was in there early too). The chances of oil as a result of having 2 large fields to the west and south and 2 positive wells to the north and east is good. This is still a high risk expo well, but the norwegians like the seismic enough to want to pay 92.5% ($14m usd) to gain 60%. A very good start. I'll get on to the seismic in the next post.

Regards,
Ed.

And a second good post by Edgein:

Edgein - 23 Feb'06 - 09:59 -


Now that you have the ambrian rearch report at hand:

Ambrian Report

The first thing to notice is the seismic crossection of Jaguar with clear directional faulting. It looks like the Brent layer has been pushed one on top of the other, in effect giving two shots or double the thickness of Brent sandstone. We don't have a scale but it must be of sigificant thickness to have been given a potential of up to 450mmbbls. There are clearly multiple horizons to be targeted in the Brent layers here.

If you look at the simplified seismic model (and remember the Norwegian's got the full seismic data not just these snap shots) you see the over lying kimmeridge oil shale present in all of the surround wells, overlying the upper jurassic and brent sandstone layers. The kimmeridge is clearly the source rock in the other wells, its has been faulted into a higher position in this well. All of the other wells in the area have the same overlying shale and the Brent sandstone oil reservoir. I'm hopeful of the potential of the Brent layer in this well, with the Upper Jurassic as an unknown.

There was a doubt over the porosity in the Brend and upper Jurassic layers, look at the snap shot of the acoustic impedance analysis. The red areas will be those of highest porosity. It is clear that there are areas of high porosity in that small snap shot, interesected by non-porous (shale and siltstone) layers. From what I've seen there is a good posibility of multiple sandstone layers divided by oil shale.

While this is a high risk expo well, there is nothing certain especially with strat traped oil, they've limited their risk by:

Advanced seismic, typical of high cost north sea drilling. Oil on four sides of this strat trap (separated off by faulting). A clearly identified Shale and sandstone layer corresponding with the local oil wells. A large strat trap lying on one of the most oil prolific fairways of the north sea, that have all produced from the same sanstone layer (Brent). The buzzard field not much more than a stones throw away (clearly good exploration potential in the area). Norwegian's that are so impressed by the full data that they want in and will pay 92.5% of the costs of this well.

Not for widows nor orphans, but from what I've seen initially I'm happy to be here with a decent amount of my cash. With a tiny cap and only small financial exposure to this well ELP looks like an attractive risk reward scenario. Downside $1.1m approximately down the loo, upside a significant oil pay in the brent sandstone. You pays your money and you takes your chances. All imo, DYOR etc etc.

Regards,
Ed.

Two to three more weeks to go before news on the Jaguar drill, which is a potential company maker for ELP.

Info on the Wildcat Jaguar Drill :

Link 1 (Jaguar Drill Commences)

Elixir/Jaguar Info Link 2

Elixir/Jaguar Info Link 3

The price has recently risen in Oz (ASX:EXR) and this is with no news, normally a bullish sign when this happens, and now interest has picked up on AIM too, so although high risk, good news might be coming.

The upside is massive if Jaguar strikes a good oil find, just a week or two to go now to find out.

The link to the Oz price is below :

ASX EXR Price

This is the Oz ASX chart for Elixir.

Certainly the forgotten big Jaguar drill is being remembered now.

Tomorrow on Oz will be most interesting, if it spikes up in Oz, things will get much hotter on AIM.

Solid day, now we wait and see what happens on the ASX over night :) Hoping for another solid rise on there too !

Strong shake at the end, but the on line limits give it away, they are short of stock.


Buy just 750 @ 41.4p
Sell 100,000 @ 39.65p

PP

I do enjoy reading your posts, very informative. The reasearch you do is excellent. You are obviously an experenced investor. This one is a bit too blue sky for me, having said that I'm up to my neck in GMC, but no doubt it'll be my loss. Good luck with your investments.

MS

mickeyskint, just an interested investor who likes to share any research or info with others, the more we share, the more we all know.

ELP is a high risk play, so its not going to be for everyone.

GMC, a good play, the sector is going to be hot in 2006 I think, and why I am building a position in BIT (they go IG live in Q1, a big change of direction, but big potential for them too as such a small market cap now)

The Oz price of EXR is rising again, up over 7% in initial trading.

Checking around, and with those with highest impact to Jaguar Drill news, there was a trend yesterday, a strong rise up.

This was seen in both Elixirs' listings ASX:EXR, AIM:ELP and also in Rocksource (www.rocksource.com)

Rocksource use cutting edge technology and methods to derisk frontier drilling.

They were farmed in by DNO for 10% rights to Jaguar.

Yesterday their price went up 12% in Norway on no news.

Read into that whatever you wish to, but for those who want to see it what way, then rises in Norway, Australia and UK
and all on the same day, points to some positive indications from ongoing drilling possibly.


Their share price is in the chart below, latest price and weekly chart (Oslo ticker RGT)

Good start to the day today again !!

The rig drilling the Jaguar prospect for Elixir is the Bredford Dolphin, for those with an aversion to taking a look, in the link below is a photo and details on it. 93 living quarters on it, its not a small rig, as you can see by it being able to do 4000MT.

http://www.dolphin-doc.no/index.asp?tid=8020&sid=8064&title=Bredford+Dolphin

Solid and stable, ready for the next two weeks up to drill results.

High risk, but with over 10 bagger potential on a good result, high risk players will be moving in.

PP
Do you seriously think the sp could increase to 4 in the next two weeks?

Ted1, the drill is potentially a several hundred million barrel find. North Sea light is worth plenty of money, just in the ground (I think around 13$). If ELP have around 200mmbo after this drill, their market cap is then 200 million x 13 from just oil in the ground, if they proceed to pull it out with other drills, then their market cap goes up with it.

Its very high risk, but the upside is massive too. Not for non risk takers, as a high chance the well will be dry and not flow commercially.

Hmmmm......
Still thinking about it..
Many thanks

Ted1, just be sure you understand the risk.

If its dry its not the end of the world though, ELP have cash in the bank and also lots more drills planned and also licenses to explore. If its dry I would expect the price to go down to around 25p, before recovering again later in the year.

So its high risk stuff, and obviously, the higher the risk the higher the potential gain.

I hear what your saying but 4 quid or more in 2 weeks jesus....
when do you expect to hear if the well has oil or not.

Looks like the mm's trying to shake this out, plenty of buying still coming in 2 x 100k buys etc....
Makes you think risk/reward......

Ted1, sorry, not 4 quid in 2 weeks.........................

It should be a 10 bagger in a period of time, from hitting any oil, 2 weeks is a little too quick :) !! A number of months could be correct, depending on hitting oil and the size of the oil IF ANY !

A good days rise in Oz, and a good days rise on AIM.

The next two weeks should get more exciting as the time draws nearer and nearer to news.

Some old info showing why today we now have these smaller companies working in the NS, UKCS.



http://www.aapg.org/explorer/2003/08aug/northsea.cfm

UK door open for next generation

"Changing the Guard" at Buckingham Palace is an elegant metaphor for an industry hand-over that is currently under way in the United Kingdom Continental Shelf.
As bidders anxiously await the results of the 21st Offshore Licensing Round -- to be announced in August -- a new generation of E&P niche players is poised to enter the high stakes of the North Sea and the U.K. Continental Shelf (UKCS).
For the first time in the North Sea's exploration and production history, the stable of bidders includes numerous small- and mid-size oil and gas companies. They've stepped up to the plate, confident that they have the "right stuff" to win the newly created, 24-month promote licenses from the U.K. Department of Trade and Industry (DTI).
With more than 30 billion boe produced to date, production peaked in the North Sea in the late 1990s at approximately 4.5 million boed. During a 38-year run, the industry drilled about 4,000 wells, resulting in more than 285 producing fields and another 300 plus significant discoveries. Exploration and appraisal activity crested the UKCS in 1990, with just over 200 exploration wells drilled.
By 2001, however, fewer than 25 exploration wells were drilled in what was considered a mature oil and gas province.
According to the DTI, 10 major oil and gas companies control about 80 percent of the North Sea's current daily production. As the average pool size dwindled in the North Sea to about 30 million barrels, the major E&P companies exited this mature oil and gas province for "greener" exploration pastures in offshore South America, Asia and Africa to hunt for elephant-size discoveries.
In an attempt to attract new niche players to the North Sea -- and to arrest the projected production decline -- the DTI introduced the 24-month promote option in February for the 21st Offshore Licensing Round. Successful bidders have 24 months to "add value" to the licenses -- through technical evaluations -- before electing to continue for an additional two-year period with a prerequisite work commitment.
"We recognize that this is a basin where the opportunity is different than it was 25 years ago," says Peter Haile, DTI's Deputy Director of Promotion, Exploration and knowledge.
"We want to establish and promote an independent, new tier of companies working the North Sea."
Thus, the DTI needs to tap into a new level of technical expertise in order to exploit the remaining reserves of the UKCS, estimated at between 25 to 30 billion boe.
Haile recognizes a full spectrum of niche opportunities that have opened up for the smaller independents -- new fields, undeveloped acreage, old or decommissioned fields and fallow fields.
"We want to get the licenses into the hands of the hungry and innovative -- we're keen to realize the remaining reserves in the North Sea," he said. "We're concentrating on new entrants."
Toes in the Water
Haile cited the Fallow Field Initiative, which forces operators to surrender discoveries to the DTI if there has been no work activity for four years.
In order to generate interest in the 21st Offshore Licensing Round, the DTI teamed up with the British Geological Survey to compile data (maps, seismic sections, well logs) to showcase prospects, leads and undeveloped discoveries available for licensing in the UKCS.
Thirty-eight fallow fields and/or discoveries lie within the unlicensed acreage alone.
New players are attracted to this mature basin because of access to infrastructure and facilities with capacity for new product. Equally attractive is the fact that new discoveries are royalty free. In 2002, despite tagging an additional 10 percent to corporate taxes (they now total 40 percent), the DTI increased the capital expenditure allowance from 25 percent to 100 percent against general corporation tax.
Citing all of the above factors, Robertson Research International ranked the UKCS number one in its annual "International New Ventures Survey," published in May. Based on the confidential polling of E&P companies, the North Sea -- with its stable regulatory and fiscal regime -- was the top pick for new ventures in 147 countries outside of North America.
As the average pool size declines, Haile explained, "value must substitute for volume; the UKCS is competitive and offers an attractive environment for business.
"If the opportunity is small, in order to make money, then you must move very quickly," he added.
"We've seen a basin go from discovery to decline ... in one person's career," said Stephen Greer, president and CEO of Calgary-based Antrim Energy.
Greer, however, would be very content to find an average-size, 30 million-barrel-field in the North Sea. Antrim is a junior oil and gas company that focuses on high-risk, high-reward international targets in the North West Shelf of Australia, offshore Tanzania, Tunisia, Argentina and the Czech Republic.
Antrim also is familiar with the DTI, as it operates the South Larne License in onshore, Northern Ireland.
With production of just over 400 boed, Antrim is listed on the Toronto Stock Exchange with a market capitalization of about $C16 million. Greer, an AAPG member, says that the 24-month promote license has enabled Antrim and its partner to compete head-to-head with much larger companies for several offshore licenses.
The 24-month promote licenses form one component of Antrim's three-prong growth strategy in the North Sea. Antrim also is currently negotiating the acquisition of a producing field, and is proceeding with a secondary listing on the London Exchange's Alternative Investment Market to access U.K.-based investors.
"The 24-month promote licenses enable us to dip our toe into the North Sea before jumping in," Greer said. "It's a tremendous advance for the U.K."
Looking for the Right Stuff
As the name suggests, the DTI anticipates that many of the smaller companies will "promote," or farm out, the blocks prior to proceeding with the work commitment phase, which will include the drilling of at least one well or the conduct of an equivalent agreed, substantive activity.
Equally attractive for small players is the cost of entry for the 24-month promote: the DTI slashed the license rentals per square kilometer from 150 for a traditional license to 15 for a promote license. A block consists of approximately 220 square kilometers; licenses are comprised of one or more contiguous blocks.
In June, the DTI conducted interviews to qualify potential bidders for the 24-month promote licenses. Reminiscent of the questions posed on a first date, the DTI had a shopping list of prerequisites for the second date.
In other words, the companies had to possess the "right stuff," including technical acumen, new ideas and geological concepts, and the wherewithal to carry out the proposed 24-month evaluation.
"The DTI is sophisticated -- they can look you in the eye and tell whether you've got the technical ability to add value to the block," Greer said. "They're opening the door -- not everyone with the understanding of the North Sea has the financial ability to work there."
Bob Welty, chairman and CEO of Calgary-based Sterling Resources, concurs with Greer.
"It's your chance to show them what you can do -- you have to present your credentials," Welty said.
Indeed, the interview process enabled Sterling's team to present new geological concepts, analogs and technologies to the DTI for two licenses.
"Even though we're not a major, we can bring experience," he said.
No stranger to the international arena, Sterling holds licenses in Romania and in the Wessex, Weald and Cleveland sedimentary basins onshore U.K. Currently without production, this junior oil and gas company trades on the TSE Venture Exchange with a market capitalization of about $C9 million.
Sterling, in conjunction with partners, has applied for two offshore promote licenses, intending to operate one of the two. One license is 2.5 blocks in size, the other 3.0 blocks.
"This was an opportunity for us to enter the offshore sooner than we thought possible," Welty said.

Who Will Farm-In?

On the flip side, given that the majors are leaving the North Sea, how will the small- to mid-size E&P companies farm out their blocks in two years' time?
"The bigger issue," cautions Keith Skipper, Antrim's executive vice president and an AAPG member, "might become who will finance the farm-in wells? The capital markets are the ultimate key here, and they are not very supportive of exploration at the moment."
Antrim however, expects to finance its own offshore wells.
Tailored to the needs of those small- to mid-size companies who win the 24-month promote licenses, APPEX London will provide new venue for explorers to showcase their properties. APPEX London is AAPG's international Prospect and Property Expo, and it will be held March 2-4, featuring a three-day upstream business conference focusing on international E&P opportunities.
Steve Veal, AAPG's European regional consultant who is part of the organizing team for APPEX London, expects that the winners of the 24-month promote licenses will be exhibiting their prospects at APPEX.

"The DTI has essentially opened the doors for small- and mid-size companies," Veal said. "Until now, the North Sea has been a 'big boy' play.

"It's a great campaign to revitalize a national oil and gas industry," he added. "It's going to spawn a whole new breed of independents in the U.K."
To date, 88 percent of the North Sea's discovered fields consist of conventional, structural traps; the more subtle, stratigraphic traps constitute only 5 percent of producing fields.
The remaining 7 percent of the producing fields are of a combined structural-stratigraphic nature.
"The capability of finding big discoveries is still out there," Veal continued. "All the giants of the North Sea have not been found."
The discovery of the Buzzard Field in 2001 by North Sea-newcomer PanCanadian Energy Corporation, proves that elephants can often lie just beneath your nose. It also proves that there's still significant life (reserves) left in the North Sea.
Calgary-based EnCana Corporation, North America's largest independent, currently operates the Buzzard Field. With 1.1 billion barrels of light oil in place, Buzzard represents the biggest find in the North Sea in more than 20 years.

Next week should be a strong week too, I can see more people getting into ELP ahead of results on the Jaguar drill. We should know in 1 to 2 weeks time if its been a success or not.

Another good post by Edgein answering a few questions :

"Edgein - 25 Feb'06 - 19:47 - 439 of 445
No problem guys and gals happy to give my views.

Dr Square,

It used to be 30mmbbls for a declared commercial find in the North Sea. The RBOS funds north sea developement. Oilexco had 21mmbbls at Brenda and secure a 90m facility as a result. Finds now between 21-25mmbbls of light oil are deemed commercial and will be able to secure significant bank finance.

Sharebuff,

North sea light oil is valued at approximately $13/bbl undeveloped, lifting costs can be as low as $4-5/bbl. Tax has unfortunately increased (approximately 50%), but due to the fallow oil inititive you can claim back ALL of your development costs from the first year of production. That's why the NS is one of my favourites, name another part of the world where that applies?

Firstly the combined total shares in issue for ELP, EXR is 63.7m. There are also 15.5m options. A find of 30mmbbls would be worth $390m usd $156m to ELP. A find of 450mmbbls has an undeveoped value once proven (P2) of $5.85bn usd or $2.34bn to ELP some 20 odd pounds per share. ELP or the broker note mention AU$28 per share if Jaguar is proved up (read those two brokers reports, they're a must for all holders).

James T,

Its speculative where they are depth wise. They could relatively speed to target depth, the slow part will be gettin through the shale seal and then slowly progressing through the reservoir sections. I wouldn't be totally surprised if they weren't already in the top of the upper Jurassic sandstone. The last 5 days of the schedule would probably take into account wirelining and casing to total depth. If she's dry I would imagine we'll hear within the 45 days.

Regards,
Ed."

Oz market open soon, so lets hope is a strong day for Elixir there, so we can get some decent moves on ELP here tomorrow.

Another rise in Oz today, just short of the 1$ offer price now, as its presently 0.99A$ on the offer.

PapalPower

good volume as well

regards

Morning gents

See this is up again this morning
An R trade just gone through

R Risk less Principal transaction at a different price

Can someone please explain what the hell that means.
Cheers
Ted

Ted1, not really, but nice to see the price rising again :)

L2 is 2 v 2 and getting stronger, could be in for some more rises this afternoon.

Elixir said they would not make any annoucements before 45 days from Jaguar drilling start (due in around 2 weeks) unless they hit a major oil find.

There is a second announcement now on ASX:EXR (Elixir in Oz), it says the suspension is due to "Results on Jagaur Drilling" Link is below :

http://www.asx.com.au//asxpdf/20060228/pdf/3vmz225dg021q.pdf

This could be it, if we have major oil, this is a no brainer multi bagger, so is it going to be a major oil find ?? ;) Exciting times ahead, and could be a very well done to all ELP holders, we hope. A large find on Jaguar could make the VOG/EME rise small by comparison.

Fingers and toes crossed !!!!

The news this morning in Oz :

This looks promising lets hope your right PP. Maybe what we have been waiting for :) Fingers crossed........

Fingers crossed not enough.

News out that no oil so far, but continuing drilling to target depth. Thats the risk, and this was high risk.

Next drill on a new license is Q4 if nothing else comes of Jaguar.

Large fall and a rebound later should happen.

Bad luck here, buts the nature of the game, good price forecast pp, spot on.

Oh my, bit of a drop.

The chances of them finding oil 50/50?

Considering how many oil stocks have been goin potty lately, it's maybe no bad thing that we've had a reality check on this one. Too many people counting chickens all over the place lately. Thankfully I can wait around as I got in at this level so nowt lost as of yet.

Does anyone know; are they still hoping to find oil if drilling continues?

There is the lower Brent to go, this is the next stage of drilling, so there is a chance as yet of an oil find on this drill.

Luckily I say, Elixir have shown great concern for shareholders, but stopping the price getting too high, and "announcing no oil yet, we keep on drilling ".

They are not a one horse show, they have cash in the bank and other licenses, more drill planned and still this present drill could turn up something yet, in the lower Brent area !!

The risk level went from high, to a bit higher for this present ongoing drill........ ;)

Try UEN for a safer bet, it acually produces oil and much more to come, see advfn for more info.

only a 42% drop today, a drop in the ocean, hope TAG does a bit better!!! please!

Kivver, this was and still is high risk. Its not a one horse show either. An overreaction on a bad day in the markets to not very good news.

High risk remains.

Down another 15% today.

I must get my spread bet account opened with CRC

With an acreage portfolio like this, it's plain to see that ELP ought to be a winner in the medium term. Given the current weakness, there ought to be plenty of upside potential; as with all such stocks, it's a case of "when will they actually find hydrocarbons in commercial quantities?" Plus, of course, how much cash will they have to burn to achieve this? I shall continue to observe closely . . .

Not very good reporting by the Independent (like where was the no oil and capping ?) but anyway, Zac Philips retains the buy rating


The worst performer of the day was the oil exploration and production minnow Elixir Energy, as the company announced that its Jaguar well in the North Sea holds no recoverable reserves and will be capped. Its shares tumbled on the news, losing 19.75p to close at 26.25p, a fall of 42.9 per cent. The house broker Ambrian said there is still a lot for the company to go for, as the Jaguar well was just one of 25 targets the company has a license for, as the analyst Zac Philips maintained his buy recommendation on its shares

Sleepless nights?

Elixir Petroleum abandons dry Jaguar well
AFX


LONDON (AFX) - Elixir Petroleum Ltd said it is to plug and abandon the Jaguar well in the North Sea after the hole turned out to be dry.

In a drilling statement, Elixir said 'oil shows' were encountered while drilling the well which was spudded up to the target depth of 13,050 feet.

'However, obtaining representative fluid samples proved difficult

due to low permeability. Consequently, the well is now being plugged and abandoned,' it said.

Elixir owns a 40 pct stake on the block, while operator DNO ASA holds 50 pct. The remaining 10 pct is owned by Rocksource ASA.

Bottom drawer and wait for next drill in Q4

PP WHATS YOUR VIEW ON THESE NOW, DO YOU THINK THEYVE BOTTOMED OUT

Looks like it, a long summer before a sniff of possible Q4 drilling.

Interims out on ELP :

http://www.asx.com.au//asxpdf/20060316/pdf/3vx0r3t4pmtq4.pdf

Activities report and cash flow statement out today, as below link :

http://www.asx.com.au/asxpdf/20060428/pdf/3whydq4mhf5yd.pdf

i was pretty noisy about this company and its management on "another site" and see no reason to change my opinion ...... the hype surrounding the drilling in Jaguar was ridiculous, and that was meant to be the jewel in this company's crown ...... why would you still want to buy?

Cynic, they do have a fairly large portfolio of assets in the North Sea. I agree that there was a lot of hype which drove the SP up to ridiculous levels (as often happens with oils), but the current SP probably represents a cautious buying opportunity as the potential upside if they do make a discovery is considerable.

I quote the interims released in March:

>> Elixir has established a highly prospective exploration portfolio in the UK North Sea comprising of interests in 14 licences. The Company has sufficient cash funds to continue an active drilling program over the next 12-15 months. <<

From that portfolio, I would expect them to deliver something. If you need more convincing, that's fine with me, as I am still inclined to be wary of this one, but I don't think it should be rejected out of hand. All IMO, DYOR as usual.

my dislike was and is primarily on the basis that this is a blue sky company with no proven assets, yet the directors would appear to look after themselves very well indeed when the company patently cannot afford such extravagance

Understood - actually the cynic in me has often thought that the best way to get rich is to found an oil exploration company. You're not even obliged to find anything; you just have to make it look as if you're trying to. And you can pay yourself 50,000 a year and ride around in a Jaguar (oh golly, no pun intended!). I have no idea whether ELP's management are any good and am not attempting to insinuate that they are doin this, but all the same, it's a good scam.

See, for example, anything involving one Vasile Frank Timis.

ah .... my other favourite scumbag! ...... why on earth anyone would back that man beggars belief .... as for sp of RPT, looks to me to be supported like an indian rope trick

LOL - that one was a blinder!!! Glad I didn't touch it - and I still won't!

Link Here

02.05.2006

Elixir Petroleum Sets Out Its Strategy Following The Disappointment Of Its North Sea Jaguar Well

We wrote in a report on our most recent oilbarrel.com conference in March what a brave man Russell Langusch, managing director of Elixir Petroleum, was. He had stood up before a packed room of institutional, retail investors and industry professionals soon after his third dry hole in a row, and following a sharp drop in the value of his companys shares which are listed on Londons AIM.

He said he was not suffering from post dry hole depression. Instead he wanted to stress that there was still a lot to go for in the UK North Sea, where the company is focused. Now an operations update from Elixir has fleshed out the companys strategy post the Jaguar dry hole.

Languschs presentation went down well with delegates because he confronted the Jaguar issue head on. Langusch had always acknowledged that Jaguar was a high-risk prospect. Well 211/22b-5 located on the Jaguar prospect in Northern North Sea Block 211/22b was spudded by the semi submersible Bradford Dolphin on January 23, 2006.

The well was designed to test a subtle Upper Jurassic trap to the northeast of Shells North Cormorant oilfield. The underlying Jurassic formation was a secondary objective. This kind of subtle stratigraphic trap has been successfully drilled on the Norwegian side of the border but has largely been overlooked in UK waters. The well was drilled to a total depth of 13,050 ft (3,977 metres).

No indications of commercial hydrocarbons were seen in the primary Upper Jurassic target. However, oil shows were observed over a 55 ft (17 metres) interval within the Middle Jurassic. Obtaining representative fluid samples proved difficult due to the low permeability of the formation. The well was subsequently plugged and abandoned. There had been a pre-drill reserve of 450 million barrels of oil.

There was some consolation for investors in that Elixir had a 40 per cent interest in the Jaguar licence but only contributed 7.5 per cent of the costs following a farm out agreement with Norwegian operator DNO. But the Jaguar well followed on the heels of the Muness and Marquis disasters. Muness, in block 21/4b, was drilled at the backend of 2005 and found only minor gas shows. The Marquis well was drilled in the summer of 2005 and was plugged and abandoned after encountering water-bearing reservoir sands.

So where does the company go now? Elixir has come a long way from a standing start 18 month ago. It holds 14 licences and 17 prospects, including a variety of structural and stratigraphic plays in the Northern Central and Southern sectors of the North Sea. The company is geared up for high impact exploration but also stresses there are some lesser risk prospects in the mix. It is also involved in the latest annual offshore UK round which was announced last March with applications for 24th round licences due for submission by mid-June. More than 1,400 blocks are available in the latest round in the North Sea, Atlantic Margin and East Irish Sea through application for traditional, promote or frontier licences. The company has already commenced work purchasing data and identifying prospective blocks for application with two highly credentialed partners. The licence offers are expected around September 2006.

As for what it has already has, Elixir is adopting a three-pronged approach. First it wants to advance on the high impact front, despite Jaguar. It is actively marketing farming out the North Sea licences which host the Leopard and Panther prospects. Leopard should be the first. This prospect could have a possible 300 million barrels. The company currently holds 80 per cent of this prospect and is seeking farm-in partners to help shoulder the costs and risks of drilling the wildcat. Marketing this prospect could be tough but Langusch reckons it is different enough to be interesting.

He says: We have done more technical work on Leopard. It does have a stratigraphic element to it but its a bit more robust than Jaguar and has a couple more targets on it.

This prospect is unlikely until 2007. The first part of the companys strategy is an intensive marketing campaign along with Alliance partner, Granby Oil & Gas to farm-out interests in the jointly held 22nd Round licences. This has been going on for some months. Some of these prospects are lower risk than Leopard. Several proposals are under consideration and there is hope to drill two or three wells in the rest of 2006.

The third is to identify some production and near production. Although the company has 3.4 million the bank, enough for drilling over the next year, then successful addition of production would complement the higher risk exploration activity and reduce the dependence on capital markets to fund ongoing exploration. Rather than paying a premium for North Sea assets at auction, the company will also be looking at possibilities in Central Europe, North Africa and the Americas.

Good post PP.

and for what it's worth (not a lot!), i see no reason to put money into this company ...... which is slightly less strong than AVOID

15 May, 2006
ELIXIR PETROLEUM LIMITED

("Elixir" or "the Company")
CENTRAL NORTH SEA PORTFOLIO FARMOUT

Elixir Petroleum Limited (ticker symbols - ASX: EXR, AIM: ELP) is pleased to
announce that it has signed a Heads of Agreement to farm-out a number of its
North Sea licences to Albion Petroleum Ltd (Albion). Under the farm-out
arrangements, Albion will earn an interest in between three and five UKCS
licence areas by funding at least C$10 million (5 million) towards the cost of
exploration wells to be drilled in these areas.

The assignment of interests to Albion will be made by both Elixir and its joint
venture partner, Granby Oil and Gas plc (Granby), who are farming-out on the
same basis and in proportion to their interests in each licence area. In
licence areas where it contributes to the cost of a well, Albion will earn a
12.5% interest by funding 25% of the well cost, with the exception of Blocks 15
/13b and 13/25, where a 6.25% interest would be earned by paying 12.5% of the
exploration well costs.

Full details of the licence participating interests are shown in Table 1
attached to this release.

The first well is expected to be drilled later this year on Block 15/13b, which
contains the Guinea prospect. It is a robust, four way dip-closed Palaeocene
structure, which lies on trend with fields such as Balmoral and Dumbarton. The
block is located about 20 km north east of the Piper oil field in a water depth
of approximately 150m.

Block 15/13b was awarded as a Promote Licence to Granby in the 22nd Licensing
Round in December 2004. A 35% interest was subsequently assigned to Elixir
under the terms of an Elixir-Granby alliance agreement. It is expected that
the Guinea well will be further farmed-down prior to the drilling of the first
well.

Assignment of the licence interests to Albion is subject to the approval of the
UK Secretary of State for Trade & Industry, the execution of a fully termed
farm-in agreement to be completed shortly and Albion demonstrating financial
capacity no later than 30 June 2006.

Albion Petroleum (ticker symbol ABP.P on the TSX Venture Exchange) is a
publicly-traded Canadian company incorporated specifically to pursue
international oil and gas joint venture exploration and development
opportunities with local operators in the North Sea.

Russell Langusch, Elixir's Managing Director, said, "We are delighted to have
secured a multi-well farm-out deal of this type with Albion. We expect to
introduce another farminee party into the Guinea well to further reduce
Elixir's cost exposure. This first well is likely to be drilled in the second
half of 2006 and will provide our shareholders with more exploration activity".

ELP's record of finding dusters is 100%, which is not to say that that will always be so.
However, I still do not like a management that would appear to look after itself very well indeed when the company does not have either the assets or the financial wherewithal to warrant it.
Meanwhile, as next spudding is not due for a while, there seems to be no need for even those intrepid souls who are so inclined to throw any money at the shares just yet.

cynic, you bang on. A totally mad management. They seem to have realised their earlier high risk and stupid strategy didnt work for too long. So now they have taken the prudent, reasonable, and sane route to farm-out opportunities with shared-risk. Thus spreading costs and increasing the no. of exploration opportunities.

Just shows rns released and sp doesnt even move. Suggests people have been burnt by the Jaguar exctiement and etc.... So they better get serious otherwise the big fat cats will soon leave it for dead

cynic, you bang on. A totally mad management. They seem to have realised their earlier high risk and stupid strategy didnt work for too long. So now they have taken the prudent, reasonable, and sane route to farm-out opportunities with shared-risk. Thus spreading costs and increasing the no. of exploration opportunities.

Just shows rns released and sp doesnt even move. Suggests people have been burnt by the Jaguar exctiement and etc.... So they better get serious otherwise the big fat cats will soon leave it for dead

More to the point, I reckon the management has woken up to the fact that they are running out of money so have to farm out to stay alive

Here is a post of mine from the TAG thread (Taghmen Energy). There is not only a TAG report on the Objective Website, but also one on ELP.

The ELP 2nd May 06 report can be read by signing up at the site below, puts fair value for ELP at 32p.



PapalPower - 18 May'06 -

Objective Captial appear to be ok, as they are covering ELP too from 2nd May, which I think is oversold now as well, so I think they are very Objective.

Worth signing up for free at their website for TAG and other small cap updates :

http://www.objectivecapital.co.uk/

Trading Halt in Oz, so some news coming :

30 May, 2006
ELIXIR PETROLEUM LIMITED
("Elixir" or "the Company")
AUSTRALIAN STOCK EXCHANGE TRADING HALT

Elixir Petroleum Limited (ASX: EXR, AIM: ELP) wishes to announce that a trading
halt has been imposed on trading in the company's shares on the Australian
Stock Exchange today pending the release of an announcement. Further
information will be provided by the Company in due course.

For further information please contact:
Elixir Petroleum Limited

Russell Langusch, Managing Director
+44 207 484 5623 (UK office)
+44 7840 523 771 (UK mobile)
+61 411 725 858 (Australia cell)
E-mail: rlangusch@elixirpetroleum.com

What kind of news needing it to halt trading???

either receivership or significant change of status

hlyeo, anything reasonably major, like a new farm out agreement, drill results, news, anything at all really, the ASX calls halts very often ahead of news, not like the AIM and suspensions.

I would guess its a new farm out agreement.............

For what it's worth, a number of trades went through first thing this morning just prior to the suspension (of course!) at 19.50

31st May, 2006
ELIXIR PETROLEUM LIMITED
("Elixir" or "the Company")

BLOCK 15/13B FARMOUT

Elixir Petroleum Limited (ticker symbols - ASX: EXR, AIM: ELP) is pleased to
announce that it has concluded a Farm-out Agreement with Nexen Petroleum U.K. Limited ("Nexen"), a wholly owned subsidiary of Nexen Inc., and Heads of Agreement with Gas Plus Italiana S.p.A. ("Gas Plus") to farm-out part of its interest in UKCS Block 15/13b.

Under these agreements, and the recently announced agreement with Albion Petroleum Limited ("Albion"), Elixir will retain a 13.125% interest in the block and its share of the costs of an exploration well will be fully funded by Nexen, Gas Plus, and Albion.

Nexen will become operator of the licence and earn a 50% interest in the block, and Albion and Gas Plus will both earn 6.25% interests. Granby Oil & Gas plc ("Granby"), through two group companies, is also farming out part of its interest on the same terms as Elixir and will retain a 24.375% interest.

The exploration well, to be operated by Nexen, will be drilled on the Guinea
prospect and is planned for the last quarter of 2006. Nexen has a suitable rig under contract and has already conducted the site survey. The well will be drilled to a depth of approximately 1,600 metres true vertical depth subsea.

The Guinea prospect is a robust four-way dip closed Palaeocene structure which lies on trend with fields such as Balmoral and Dumbarton. The block is located some 20 kilometres north east of the Piper oil field in a water depth of approximately 150 metres. In 2005 a discovery well, operated by Nexen, was drilled on a Palaeocene prospect named Yeoman in Block 15/18b to the south of Block 15/13b.

Assignment of the licence interests and transfer of operatorship to Nexen are subject to the approval of the Secretary of State for Trade & Industry.
Assignment of the licence interests to Albion and Gas Plus are subject to the execution of fully termed farm-in agreements, execution of the Joint Operating Agreement and approval of the Secretary of State for Trade & Industry.

Russell Langusch, Elixir's Managing Director, said, :

"We are delighted to have finalised the farm-out arrangements for this block, forming a partnership to drill an exploration well in 2006 with Elixir
retaining a material interest without cost exposure. It is particularly
encouraging that the quality of the Guinea prospect has attracted a large
independent company with successful exploration experience in the area. We look forward to working with our new partners and providing more exploration activity for our shareholders."

There is a 19th July research report update by Objective Capital, free to read, just need to register (again free). Link below :


http://www.objectivecapital.co.uk/objectiveresearch.asp?



Elixir Petroleum (ELP.L) - expanding horizons & the potential for M&A activity
ELP.L
Update by Sam Kiri , Jul 19, 2006

27 September, 2006

ANNUAL FINANCIAL REPORT

Elixir Petroleum Limited (ticker symbols - ASX: EXR, AIM: ELP) ("Elixir" or
"the Company") announced today its financial results for the 12 month period to
30 June, 2006.

For the period the Company recorded a net loss of A$7.0 million (2.8 million)
after expensing unsuccessful North Sea exploration costs totalling A$5.1
million (2.0 million).

The majority of the A$5.1 million writeoff comprised costs associated with the
Company's unsuccessful Muness (A$1.1 million) and Jaguar (A$3.7 million)
exploration wells.

The full year 2006 result compares with a loss of A$3.7 million (1.6 mllion)
posted in the previous 2004-05 year.

The full financial results are set out in the directors' report and
accompanying financial statements which can be accessed via the Company's
website www.elixirpetroleum.com

Highlights of the past year include the following:

Operations

Consolidated UKCS position securing six licences in the 23rd Seaward Licensing
Round

Farmed-out Guinea prospect (Block 15/13b) for a 13.125% fully-carried interest
in upcoming well

Applications submitted with experienced North Sea partners in current 24th
Licensing Round.

Corporate & Financial

Replaced Jaguar well costs with A$2.6 million (1.0 million) capital raising in
May 2006

Cash funds of A$11.1 million (4.4 million) on hand at year-end.

The Company has established a highly prospective portfolio of North Sea
exploration interests. With its strategy of farming-out licence interests in
return for a total or near-total carry through the subsequent exploration
wells, Elixir has sufficient funds to conduct an active drilling program for
another 18-24 months.

Exploration opportunities already identified within Elixir's current licences
combined with numerous new opportunities provide the Company with an excellent platform for growth. The Company aims to transform itself into a significantly larger group through exploration success and acquisitions.

For further information please contact:

Elixir Petroleum Limited

Russell Langusch, Managing Director +44 207 484 5623 (UK office)

+44 7840 523 771 (UK mobile)

+61 411 725 858 (Australia cell)

E-mail: rlangusch@elixirpetroleum.com

Nice to see some fizz back in ELP ahead of their next North Sea drill :)

A few 100K buys today and much increased volume in Oz, will have to watch volumes as we go forward, as ELP could well be a takeover target.


http://www.thebusinessonline.com/Document.aspx?id=993DA3BF-7A31-43CE-AE3F-F3478508418A


"..............Targets include Elixir Petroleum, Grove Energy, Nido, and even the struggling Wham Energy."

.......thought I was the only one that stuck with this one,it would be nice to claw some back!

sell into the bounce

There's confidence cynic !! ;)

Anyway, moving again.

sorry but don't like the company and its greedy management even less

Still a long way down on this one......it was always a high risk punt.

not for the directors ..... they continue to pay themselves very well indeed

Cynic....are you in this one,or have you been?

was and made money both as bull and bear

......still in?

not likely!

The Guinea prospect should be due for spudding sometime soon, and the fact that Nexen are interested and operators adds something to the positive side of prospects. Its a high impact drill with considerable upside for ELP on success, so therefore while high risk, it offers high potential reward.

Worth going through the recent ELP (Oz=EXR) Presentation :

http://www.elixirpetroleum.com/assets/29/EXR%20Company%20Update_Sep06.pdf

quality of this company and especially its management is no better now than it was when drilling for dust in north sea a few months back

GUINEA WELL TIMING

The Company recently indicated in its September Quarterly Report lodged with
ASX on 31 October 2006 that the Guinea Well in Block 15/13b was scheduled to
spud in mid November 2006. Due to a combination of several circumstances,
including adverse weather conditions in the north-sea, the Well is now expected
to spud in the first half of December 2006.

And the news is only reported now???? ...... Hmm! ...... My post 91 says it all

9th Jan 2007 Update :

http://www.objectivecapital.co.uk/ocreports/oc-ukhnw-full-objective-elixir-jan07.pdf


***********************

Previous July 06 Update :

http://www.objectivecapital.co.uk/ocreports/oc-ukhnw-full-objective-elixir-july06.pdf

http://www.investegate.co.uk/Article.aspx?id=20070220070000P1A46

20 February, 2007
ELIXIR PETROLEUM LIMITED
("Elixir" or "the Company")

FARMOUT OF BLOCK 211/18b LEOPARD PROSPECT TO RWE DEA UK

Elixir Petroleum Limited (ticker symbols - ASX: EXR, AIM: ELP) is pleased to
announce that it has accepted an offer from RWE Dea UK SNS Limited (RWE) to farmin to the Company's northern North Sea Block 211/18b.

Block 211/18b (Licence P1381) is a traditional licence awarded in the 23rd UKCS Licensing Round in December 2005. The current interest holders in P1381 are Elixir (80%) and its joint venture partner, Sosina Exploration Ltd (20%).

Under the terms of the farmin offer, RWE will secure a 30% interest in Block 211/18b by contributing on a promoted basis to the cost of drilling an
exploration well on the Leopard prospect. The interests of Elixir and Sosina
will decrease to 56% and 14% respectively as a result of the RWE farmin.

The offer is conditional upon the execution of a formal farmin agreement by 30 April 2007 and the consent of the Secretary of State for Trade and Industry to the licence interest assignment.

The P1381 joint venture will be actively seeking to attract another farminee such that Elixir and Sosina's cost exposures to the planned Leopard well are largely covered.

Leopard is a large Upper Jurassic stratigraphic prospect within Block 211/18b which, based on Elixir's mapping, could contain prospective hydrocarbon resources up to several hundred million barrels of oil. The prospect has been mapped from modern 3D seismic. In addition it has been derisked by a long offset seismic line linking Leopard with a producing analog, the Borg oil field, across the median line in Norway.

Elixir's Managing Director, Russell Langusch, commented: "We are delighted to be joined by a farmin partner of the calibre of RWE to drill such a high
potential prospect as Leopard. We are confident of attracting another farminee to enable us to proceed with detailed planning of the exploration well."

PP .... can think of all sorts of good reasons NOT to buy into this company, not least that the directors seem to look after themselves very well, without results remotely warranting same

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1172109626&feed=oilbarrel_en

22.02.2007

Elixir Bags Farm-In Partner For Leopard Wildcat

Its not a well-maker but investors will be pleased to see Elixir Petroleum has clinched one farm-in partner to share the costs and risks of drilling the Leopard prospect in the North Sea. German firm RWE Dea has agreed to earn 30 per cent of Block 211/18b by contributing to the costs of the wildcat, thereby reducing Elixirs exposure to 56 per cent and leaving its partner Sosina Exploration with 14 per cent.

This equity reduction is still not enough to greenlight drilling, however, with both Elixir and Sosina keen to limit their risk further. Both companies want to see their costs largely covered by farm-in partners before sinking the well. Elixir's managing director Russell Langusch said he was confident they could attract another farminee to enable us to proceed with detailed planning of the exploration well".

There is no doubt that this will be perceived as a high risk well. Leopard, which lies in the northern North Sea, is a large Upper Jurassic stratigraphic prospect. The prospect has been mapped from modern 3D seismic and there is a long offset seismic line that links Leopard with the producing Borg oilfield in Norwegian waters. Elixir, which is listed on the Australian Stock Exchange as well as Londons Alternative Investment Market, reckons the structure could contain up to several hundred million barrels of oil.

The proof, however, will lie with the drillbit - and this has not always been kind to Elixir. Last year the company drilled three dry holes in a row, including the high impact, high risk Jaguar prospect in Northern North Sea Block 211/22b. Like Leopard, Jaguar was an Upper Jurassic stratigraphic trap and was believed to be analogous to the Borg field. These types of play have received little attention on the UK side of the border but have been successfully exploited by the Norwegians. That Jaguar failed to deliver will, of course, have knocked confidence in Leopard but its worth remembering that the prospect is reckoned to be lower risk because it lies geologically updip of Jaguar. RWE Dea have certainly seen potential in the well.

Elixir has another of these plays on the books. Block 211/8b, also in the Northern North Sea and to the northeast of the Leopard block, is home to the Panther prospect. This is reckoned to have potential at the Upper Jurassic and Lower Cretaceous horizons. Elixir has 80 per cent of this block and is actively marketing the block to find farm-in partners before moving ahead with a well.

Its not all high risk wildcatting, however. There is some near-term well exposure for investors with the upcoming Guinea well, which is targeting a more conventional play in a well understood area of the North Sea. Having successfully farmed down its interests here, Elixir will be a minor partner in the Guinea well, which is due to spud this quarter.

Guinea is a four way dip-closed Palaeocene prospect which lies on-trend with producing oil fields to the southeast, including Balmoral and Dumbarton. The Guinea prospect could hold as much as 120 million barrels. Nexen holds interests in a cluster of blocks adjacent to Block 15/13b, including Block 15/18b to the south, home to the Yeoman oil discovery. This opens up the possibility of an early field development, should the well strike lucky.

http://www.asx.com.au/asxpdf/20070226/pdf/3114r3y1r7d0x6.pdf

Drilling Commences on Guinea Well

12.83p to buy.

A bargain for a speculative punt, with money you can afford to lose half off on bad news, but also would not mind getting a few multiples of it back on good news, IMO.

PP .... EXR is a total crap company with rubbish management who only look after themselves ..... suggest you have a look at VOG where i am just posting again

cynic,who the f. are EXR?

EXR is the Oz listing epic of ELP.

cynic, its a punt as if the present well hits oil, then it will pay back big time.......who cares about the management, the punt is on the drill only.

as i have said, there are better E&P gambles than this

There is on average, but this drill should find oil, commercial or not is another question, but this is probably their least risky drill so far, and therefore, worth a punt imo purely on the results of this drill.

am sure i could find a 3-legged pony for you to back with better odds

LOL :)

sorry PP ..... Cassandra looks to have been proven right again

Indeed, never mind, always worth a speculative punt, I'll have another on the Leopard drill late this year or early next.

New article, click HERE

SP a tad jaded here.