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)

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.