ELIXIR ENERGY LIMITED — Capital/Financing Update 2008

Apr 23, 2008

24 April, 2008

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ASX RELEASE

POMPANO PROJECT – FLOW TEST RESULTS – WELL #2

Elixir Petroleum Limited (“Elixir”), the international oil and gas exploration and production company (ASX:EXR, AIM:ELP), is pleased to provide an update on completion operations on Well SL 103230 #1 (“Well #2”) at the Pompano Gas Field, offshore the Texas Gulf Coast.

Since our last announcement flow testing of Well #2 has been completed, yielding the following results:

B Sand

Formation Top: 7,287 feet Measured Depth (“MD”) Net Sand Interval: 44 feet Final Flow Rate: 0.8 million cubic feet of gas per day (“MMscf/d”) on a 22/64” choke

E Sand – Main Objective

Formation Top: 8,301 feet MD Net Sand Interval: 30 feet Final Flow Rate: 6.1 MMscf/d with 30 barrels per day of condensate on a 16/64” choke

The reservoir pressure encountered in the E sand was significantly in excess of the pre-drill estimate. As a result, the flow rate test for the E sand was also at the upper end of expectations. The observed higher pressure in the E sand may ultimately lead to a higher recoverable volume being achieved from this zone.

Although gas was produced to surface from 12 feet of net pay in the C sand, the zone proved ultimately to be non-commercial on test.

It is expected that on a trouble free basis Well #2 will be placed on production within the next 10 days. We are advised that the rig was released from location at 9:05am (US/CST) on 23 April 2008 As such, this will be the final routine release for Well #2.

The Participants in Well #2 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.

Golden Cross House Level 20 8 Duncannon Street 77 St George’s Terrace London WC2N 4JF Perth WA 6000 Tel: +44 207 484 5019 Western Australia Fax: +44 207 484 4992 +61 8 9440 2650 Website: www.elixirpetroleum.com +61 8 9440 2699 ABN 51 108 230 995

Elixir’s 25% working interest in Well #2 will be reduced by 5.5% pursuant to a ‘back-in’ arrangement with the Operator once Elixir has recouped 120% of its total investment in the well.

Yours sincerely,

Alex Neuling Company Secretary Elixir Petroleum Ltd

Pompano Project – Background

The Pompano gas field lies offshore in the Gulf of Mexico, in Brazos Block 446-L SE/4, which is approximately 90 miles southwest of Houston Texas. The field is approximately 7 miles offshore in 55 feet of water.

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Schematic: Pompano Field Layout

The Pompano gas field was discovered in 1966 and produced over 120 billion cubic feet of gas prior to being shut-in in 2003. The Pompano Project is essentially a re-development of the Pompano gas field with new well locations based on modern 3D seismic data.

Well #1 was directionally drilled in January 2008 from the field’s existing “B” satellite platform to 7,825 feet measured depth. Well #1 intersected three gas bearing sands located between 6,700 feet and 7,426 feet measured depth (“MD”) which were successfully flow tested. Production commenced from this well in early March 2008 from the B and 6700A sands.

Well #2 spudded in late February 2008 and was directionally drilled from the field’s existing “A” Production Platform. Well #2 encountered several gas bearing sands between 7,300 feet and 8,980 feet MD. The well has been

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completed using a dual string completion over the B and E sands so as to enable concurrent production of these two zones. It is expected Well #2 will be placed on production around the end of April 2008.

The Pompano Project is using the field’s extensive existing production and pipeline facilities, which has achieved a significant capital cost saving and a reduction in time to production for the project.

Information contained in this report with respect to the Pompano Project, was compiled from material provided by the project operator, AnaTexas Offshore Inc., and reviewed by the Company’s Operations Manager, Mr. I L Lusted, BSc (Hons), who has had more than 15 years experience in the practice of petroleum engineering. Mr Lusted consents to the inclusion in this announcement of the information in the form and context in which it appears.

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