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ELIXIR ENERGY LIMITED — Capital/Financing Update 2008
Jun 23, 2008
64893_rns_2008-06-23_83f5725e-9c81-46e0-bf58-f52f13b258b5.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
ABN 51 108 230 995
24 June 2008
Company Announcements Platform Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement
POMPANO PROJECT – RIG SECURED FOR THIRD DEVELOPMENT WELL
Elixir Petroleum Limited (“Elixir”), the international oil and gas exploration and production company (ASX:EXR, AIM:ELP), is pleased to announce that the operator of the Pompano Project has contracted a drilling rig to drill the third development well at Pompano.
It is expected the rig will be mobilised to site by late July 2008. The operator is in the process of finalising the well programme and the procurement of drilling materials, after which a complete well proposal will be forwarded to partners for consideration and approval.
The Pompano Project is located in shallow waters offshore Texas in the Gulf of Mexico and is currently producing approximately 15 MMscf of gas per day and 50 barrels of condensate from two development wells which are tied back to a production platform (see schematic below).
Commenting on the announcement, Elixir’s Managing Director, Andrew Ross said:
“We are looking forward to receiving the well proposal from the operator and to the commencement of the second phase of drilling activities at Pompano in July.
“Based on our current production rates from our US operations, and recent gas prices in the US, we anticipate our net revenues for May and June will exceed US$2.75 million, setting a new record for Elixir. Continued high gas prices and growing production would see Elixir generate strong cashflow from the US over the next twelve months.”
The Participants in the Pompano Project and their respective working interests are:
| Elixir Petroleum Ltd Buccaneer Energy Ltd Baron Petroleum Inc. Streamline Exploration Inc. |
25.0% 65.0% 7.5% 2.5% |
|---|---|
| 100% |
- Interests held indirectly via their respective shareholdings in wholly-owned subsidiaries.
ASX CODE: EXR www.elixirpetroleum.com
Elixir Petroleum Limited
Level 20, 77 St George’s Terrace PERTH WA 6000, AUSTRALIA T: +61 8 9440 2650 F: +61 8 9440 2699 E: [email protected]
Yours faithfully,
Alex Neuling Company secretary Elixir Petroleum Ltd
For further information, please visit Elixir’s website at www.elixirpetroleum.com
Figure 1: Schematic of Pompano Project Field Layout
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