ELIXIR ENERGY LIMITED — AGM Information 2009

Nov 23, 2009

Elixir Petroleum Limited Annual General Meeting 24 November 2009

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(ASX:EXR)
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Important Notice and Disclaimer

This document has been prepared by Elixir Petroleum Limited (ABN 51 108 230 995) (“Elixir”) in connection with providing an overview of its business to interested anal y sts/investors.

This presentation is being provided for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of Elixir. This presentation is thus by its nature limited in scope and is not intended to provide all available information regarding Elixir. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as a representation of any matter that a p otential investor should consider in evaluatin g Elixir.

Elixir and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. No responsibility or liability is accepted and any and all responsibility and liability is expressly disclaimed by Elixir and its affiliates, subsidiaries, directors, agents, officers, advisers and employees for any errors, misstatements, misrepresentations in or omissions from this presentation. Elixir accepts no obligation to correct or update anything in this presentation.

Any statements, estimates, forecasts or projections with respect to the future performance of Elixir and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Elixir's management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis which , whilst reasonably formulated , cannot be guaranteed to occur . Accordingly , no representations are made by Elixir or its affiliates , subsidiaries, directors, officers, agents, advisers or employees as to the accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guarantee of value or future results; and there can be no assurance that the projected results will be achieved.

Prospective investors should make their own independent evaluation of an investment in Elixir.

Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001 (Cth). This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. This presentation does not take into account the objectives, financial situation or needs of any person, and independent personal advice should be obtained.

This p resentation and its contents have been made available in confidence and ma y not be re p roduced or disclosed to third p arties or made public in any way without the express written permission of Elixir.

All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

Outline

• Corporate Overview

• Performance Review

• Operations and Assets

• New Ventures

• C onc us on an l i d Y ear Ah ea d

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Overview

• Elixir is an international E&P company with a diversified portfolio of interests across the ex p loration, a pp raisal, develo p ment and p roduction s p ectrum

• Current geographic areas of activity include:

• Development and Production from the shallow shelf Gulf of Mexico

• Exploration and Appraisal activities in the UK North Sea

• Cash on hand at 30 June 2009 $8.1m (mid-Nov 2009 - $7.1m)

• • Ongoing receipts from production from High Island and Pompano

• • Restructured UK business and rationalised UK portfolio to three key licences

• • Have cut costs in 1H 2009 which will flow through in FY 2010

• A$3m repaid in Jan 2009 - Elixir is debt free

• • N i i t iti f th ow exam n ng new oppor un es or grow

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Corporate Profile

Capital Structure

Exchange: ASX:EXR Ordinary shares: 188.9m Unlisted Options: 8.4m No of Shareholders: ~1,605

Trading Performance

Share Trading Range: $0.03 – $0.095 (prior 12 months) Current Share Price: $0.057 Current Market Cap: ~$10.8m Avg Trading Volume: ~370,000/day

Operating Performance

30/6/08 31/12/08 30/6/09

Production (Bcfe): 0.9 0.4 0.6 Sales Revenue ( A $ m ) : 9.1 4.2 5.6 Cash on hand (A$m) : 10.6 12.5 8.1

* 6 months

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Industry Data

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FY2009
Natural Gas Price (HSC) - 67.5%
Crude Oil Price (WTI) - 50.6%
Total US Production -7mmboe
UKCS Ex loration Drillin 1H’09 - 57%
p g ( )
USD / AUD -16 . 5%
North Sea Ri Rates -44%
g
$12.00
$160 . 00
$140.00 $10.00
Crude Oil (WTI)
$120.00 Natural Gas (HSC)
$8.00
$100.00
$ 80.00 $6.00
$60.00
$4.00
$40.00
$2.00
$20.00
$0.00 $ 0.00
Jul-2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul-2009 Sep-2009 Nov-2009 Jul-2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul-2009 Sep-2009 6
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Operational Profile

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Head Office
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Regional Office
Local Reps
UK North Sea –
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Appraisal
Gulf of Mexico –
Development &
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Geographic and Lifecycle Diversification

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Island High Project (30%WI)

• Two wells on production since Sept 2007

• Sh u - n or mon t i f 5 th s n i FY 2009

• Gas production rate is currently facilities constrained

• Field currently producing at ~0.5 mmscf/d of gas and 200 Bbls/d condensate (100% project)

• Operator has confirmed potential to increase gas rate to 10-13 mmscf/d

• Continue with oil recovery from existing horizon in current low gas price environment

• Consider workover in Q2, 2010

	, High Island FY 2009 Tot al Cum (100% Project) Prod’n Gas Prod’n (Bcf) 0.92 3.65 8 Oil Prod’n (Bbls) 14,400 86,000

Pompano Project (25%WI)

• Two wells on production since May 2008

• ATO#3 not commercial – sidetrack candidate

• Remedial workover undertaken of Well #1 in Sept 2009 to restore higher production rates

• Current production rate of ~6.4MMscf/d (100% project)

• Independent reserves update being undertaken

• • P ti v it i i f UFBC an d R e d Fi s h rospec y rev ew ongo ng or

• • Operator may recommend further wells in 1H 2010

	Pompano (100% Project) FY 2009 Total Cum Prod’n Gas Prod’n (Bcf) 2.25 3.44 Oil Prod’n (Bbls) 1,035 4,800 9

Tiger Prospect (100% WI , Operator)

• Block 211/12b awarded Feb 2009 with 4 year term

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• Drill or Drop commitment b y Feb 2012

• • Tiger prospect is an Upper Jurassic Magnus Sandstone prospect

• Located adjacent to 1.5 Bn bbl Magnus field

• Downdip well with oil shows and extensive 3D data

• Technical work to better define geobody and reserves complete

• Significant uplift in resource estimate anticipated

• Farmout marketing to commence

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- Mulle Appraisal Project (40% WI , non operated)

• Mulle discovered by 1970’s vintage well - 17m NNS gross oil column , drilled off crest , not tested

• Mulle on trend and down dip from Causeway

• A raisal well and testin ro ramme re uired pp g p g q

• – multiple export routes

• Data room for farminees conducted Q4 2008

•	Data room for farminees conducted Q4 2008	Data room for farminees conducted Q4 2008
•	Acquired southern extension in Feb 2009
•	Licence term through to October 2011
•	Progress appraisal farmout with a
	strengthening and stable oil price
	1C 2C	3C
	Boe Boe	Boe
	Project (100%) 4 17	36
	Elixir (40%) 1.6 6.8	14.4
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Source: DNO (UK) Limited - Operator

Leopard Prospect (56%WI , operator)

• Block 211/18b contains Leopard prospect

• Original licence term expires 21 December 2009

• Request made to extend term - dependent on well commitment being made

• Final conversations with potential farminees ongoing

• If farminee can be secured, good prospect for licence extension and drillin in mid-2010 g

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NNS
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• If no farminee secured, licence will be relinquished at conclusion of its term

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Leopard
Prospect
Borg
Jaguar Field
Well
211/22b-5
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New Ventures

New Ventures Screening Criteria

Established Petroleum Basins Low Sovereign Risk Superior Fiscal Regime Credible JV Partners Oil and/or Gas Prone Exploration Appraisal and Development Large Acreage Position Drill Ready Multi le Pla T es Multi le Tar ets in Wells p y yp p g Long Licence Term Ready Access to Infrastructure Established Ex ort Market p

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New Ventures

• Participation in 26[th] UK Seaward Licensing Round in Q1, 2010 – R oun d t d t o e announce b d i J 2010 expec e n anuary

• – Bid groups forming now

• Applications in by April 2010

• Have reviewed 20+ new opportunities in the past 6 months:

• Gulf Coast and shallow shelf

– UK on and offshore

• Onshore Europe

• North Africa

• Progressing opportunities that if secured would represent meaningful extensions to Elixir’s core business

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Year Ahead

US Gulf of Mexico

• M i i i il d uct on at i Hi h I s an l d i n s h ort term a nta n ng o pro g

• Increased gas rates to be achieved through workovers of existing wells

• Workover on Well #1 at Pompano successful with increased rates

• Redfish and UTFB prospects to be progressed in 1H, 2010

• North Sea

• Tiger exciting new prospect with farmout marketing commenced

• Mulle appraisal programme being addressed with operator

• Preparations underway for UKCS 26[th] Licensing Round in early 2010

• Outcome for Leopard known within the month

• New Ventures

• Examining a number of new growth opportunities, both corporate or asset

• • Mindful of recent volatility in markets and forecasts for commodity prices ’

• • M i f l t i t Eli i b i b i d ean ng u ex ens ons o x r s core us ness e ng pursue

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www.elixirpetroleum.com

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