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.
____________________________________________________________________



** As with all O+G exploration, there is considerable risk involved, so not for widows or orphans !!
____________________________________________________________________

Oz chart for Elixir (ASX:EXR)

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