ELIXIR ENERGY LIMITED — Capital/Financing Update 2009

Oct 5, 2009

ASX ANNOUNCEMENT

ABN 51 108 230 995

6 October 2009

Company Announcements Platform Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement

Pompano Project – Well #1 Workover Update

Elixir Petroleum Limited (“Elixir” or the “Company”), the international oil and gas exploration and production company (ASX:EXR) is pleased to announce the successful completion of the workover of Well #1 at the Pompano Field and the recommencement of gas sales from the well.

Since the last update, the B sand has been re-perforated and an electric log has shown a significant improvement in annular seal following the cement squeeze operations undertaken last week. Both strings have been unloaded using nitrogen to lift out completion fluids and the well clean-up continues to be monitored.

At the time of the operator’s report on Monday, 5 October 2009 (CST), Well #1 was flowing at an aggregate gas rate of approximately 3.3 million standard cubic feet per day with declining water production of approximately 325 barrels per day. Water and any sand content of the production will continue to be closely monitored. The operator intends to limit the production rate from Well #1 whilst the well cleans-up. Once production rates have stabilised, the choke settings on the well may be adjusted to increase the gas production rate from Well #1.

The lift barge and support vessel have now been demobilised and equipment back loaded at the dockyard.

This will be the final weekly update concerning the workover operations conducted on Well #1 at the Pompano field.

Yours faithfully,

ELIXIR PETROLEUM LIMITED

David Lim Company Secretary

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: info@elixirpetroleum.com