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)

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 . . .