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)

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