ELIXIR ENERGY LIMITED — Interim / Quarterly Report 2010

Apr 29, 2010

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ASX RELEASE

30 April 2010

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 MARCH 2010

HIGHLIGHTS

• Acquisition of a 100% interest in the very large Moselle Permit located in Northeastern France

• Workovers of two High Island, Texas wells to increase field production to be undertaken in the June 2010 Quarter

• Marketing activities to commence on Block 211/12b (Tiger Prospect) UK North Sea

• Several additional new opportunities currently under consideration

• Cash on hand at the end of the period of $6.38 million

Elixir is an internationally focused upstream oil and gas company with a diversified portfolio of petroleum interests across the exploration, appraisal, development and production lifecycle.

A summary of the Group’s activities for the March 2010 quarter is set out below.

DEVELOPMENT AND PRODUCTION

Gulf of Mexico

Project Name: High Island Project (Block 268A) Location: High Island Area, Offshore Texas, USA Ownership: 30% Working Interest (22.5% Net Revenue Interest) Operator: Peregrine Oil and Gas, LP

The High Island field is located approximately 60 kilometres offshore the Texas coast in the Gulf of Mexico. The field has been in production since September 2007 and has produced to date in excess of 3.9 billion cubic feet (“Bcf”) of gas and over 135,000 barrels (“Bbls”) of condensate (100% project).

Production uptime for the High Island 268 platform has continued to be curtailed due to gas handling constraints at the nearby High Island 442 processing facility. As the existing producing zones at High Island deplete, it has become necessary to utilise compression facilities on the High Island 442 platform to boost the gas pressure to export pipeline levels. The owner of the High Island 442 facility is afforded preferential usage of available compressor capacity for its well streams. During the reporting quarter it has been possible to maintain production at the A1 well, which produces predominantly condensate, while only minor gas production has been possible from Well A2. Attempts have been made by the operator of High Island 442 to reconfigure the compressor to allow greater capacity throughput, but these have not been successful to date.

Both wells have a second shallower zone with gas reserves at original reservoir pressures which will not require compression at the High Island 442 processing platform prior to export. During the quarter the operator proposed that each well be recompleted across the shallower horizons in each well. Elixir has elected to participate in the work program and the work is currently scheduled to be carried out in June.

8 The Courtyard Level 20 Eastern Road 77 St George’s Terrace Bracknell Perth WA 6000 Berkshire RG12 2XB Western Australia Tel: +44 1344 423 170 +61 8 9440 2650 Fax: +44 1344 360 268 +61 8 9440 2699 Website: www.elixirpetroleum.com ABN 51 108 230 995

The following table summarises the production achieved from High Island during the quarter:

High Island 268A		Gas Production	Gas Production	Gas Production			Oil Production	Oil Production	Oil Production
	Total Mar Qtr (MMscf)	Total Dec Qtr (MMscf)	Avg Daily Mar Qtr (MMscf/d)	Avg Daily Sept Qtr (MMscf/d)	Change (%)	Total Mar Qtr (Bbls)	Total Dec Qtr (Bbls)	Avg Daily Mar Qtr (Bbls/d)	Avg Daily Dec Qtr (Bbls/d)	Change (%)
Project (100%)	27.7	60.9	0.31	0.66	-55%	12,738	13,294	142	145	-4%
Elixir (30% WI)	8.3	18.3	0.09	0.2	-55%	3,821	3,989	42	43	-4%

Well A1 maintained production rates averaging approximately 153 bopd during the quarter and managed 92% uptime. With greater available gas processing capacity, it is likely that higher rates would have been achieved from this well. Well A2 was able to be produced at reduced rates intermittently through the quarter. The well had an uptime result of 69% for the quarter. Whilst on line, Well A2 achieved an average production rate of 147 mscf/d.

Project Name: Pompano Gas Project (Block 446-L SE/4) Location: Brazos Area, Offshore Texas, USA Ownership: 25% Working Interest (18.125% Net Revenue Interest) Operator: AnaTexas Offshore Inc.

The Pompano field lies within the Brazos Area and is approximately 12 kilometres offshore the Texas coast and 150 kilometres southwest of Houston. The field has two production wells, with each producing from two separate reservoirs. A third well drilled during Q3, 2008 has been temporarily suspended as a future sidetrack candidate.

The field has produced approximately 4.84 Bcf of gas and 4,953 Bbls of condensate (100% project) since the commencement of production in March 2008.

Further work on the field is currently being considered by the joint venture. This includes a small workover on the shallow B sand in well ATO #2 and the possibility of a sidetrack to the presently suspended well ATO #3. Participation in these operations will be assessed in light of prevailing and forecasted gas prices in the US and in the context of Elixir’s overall portfolio.

The following table summarises the production data for the reporting period:

Pompano Field – Brazos Block 446-L		Gas Production	Gas Production	Gas Production			Oil Production	Oil Production	Oil Production
	Total Mar Qtr (MMscf)	Total Dec Qtr (MMscf)	Avg Daily Mar Qtr (MMscf/d)	Avg Daily Dec Qtr (MMscf/d)	Change (%)	Total Mar Qtr (Bbls)	Total Dec Qtr (Bbls)	Avg Daily Mar Qtr (Bbls/d)	Avg Daily Dec Qtr (Bbls/d)	Change (%)
Project (100%)	535	533	5.9	5.8	1%	179	158	2	1.7	13%
Elixir (25% WI)	134	133	1.48	1.45	1%	45	40	0.5	0.4	13%

Production at the Pompano field has been maintained with a 98.5% uptime over the reporting quarter and the field produced at an average gas production rate for the quarter of 5.95 mmscf/d.

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Following the completion of the workover of well ATO#1 in late 2009, the B sand in the well has produced over two thirds of field production at an average rate of 3.95 mmscf/d. The shallower 6700 sand has not been produced since it was shut in on 1 November 2009. Well ATO#1 continues to exhibit a very gentle decline associated with pressure depletion.

Well #2 achieved an average flow rate in the March quarter of approximately 2.0 mmscf/d, with the majority of the production originating from the deeper E Sand completion.

APPRAISAL

UK North Sea

Project Name: Mulle Prospect (Block 211/22b and 211/27d) Location: Northern UK North Sea Ownership: 40% Working Interest Operator: DNO (UK) Limited

The Mulle accumulation lies in Block 211/22b on the south-western extension of the Osprey ridge and is adjacent to the proposed Causeway oil field development.

The operator of Block 211/22b has published a most likely contingent resource estimate for Mulle of 18 million barrels of oil. This equates to a most likely net contingent recoverable oil resource to Elixir of almost 7 million barrels. This resource estimate excludes the anticipated increase in resources from the award of Block 211/27d to the Mulle joint venture in 2009, which contains a mapped southern extension to the field.

A meeting of the joint venture was held in January at which a revised workscope and budget for the project was agreed. The JV is currently implementing a phased work programme that reduces upfront costs for potential farm-in partners with a view to re-marketing the project to industry in 1H 2010. The current licence term for Blocks 211/22b and 27d does not expire until late 2011.

EXPLORATION

France

Project Name: Moselle Permit Location: Northeastern France Ownership: 100% Working Interest Operator: East Paris Petroleum Development Limited (“EPPDL”)

The Moselle Permit is a 5,360 km[2] onshore exploration block located in Northeastern France which was awarded in January 2009 to EPPDL for an initial five year term. The Permit is prospective for a number of different play types including conventional oil and gas, unconventional gas (i.e. tight sand and shale gas) and coal bed methane. Over 4,000 kilometres of 2D seismic exists over the block and several dozen oil and gas wells have been drilled in the Permit area, with the last well drilled in 1995.

On 8 February 2010, Elixir announced that it had entered into an agreement to acquire all of the issued share capital of EPPDL. The acquisition was conditional on receipt of French Government approval to the acquisition. This approval was subsequently sought and obtained and the completion of the acquisition was announced to the market following the end of the quarter on 15 April 2010.

Elixir has already commenced exploration activities on the Permit with the acquisition and reprocessing of over 500 kilometres of 2D seismic data and the analysis of key borehole data, including wireline and core data from 105 existing wells located in, and adjacent to, the Permit area. The analytical

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programme is directed towards the generation of initial in-place hydrocarbon resource estimates for the Permit and the prioritisation of subsequent work programmes (including identifying potential drilling targets).

UK North Sea

Project Name: Tiger Prospect (Block 211/12b) Location: Northern UK North Sea Ownership: 100% Working Interest Operator: Elixir Petroleum (Europe) Limited

Block 211/12b is located in the northern sector of the UK North Sea, approximately 160 kilometres north east of the Shetland Islands, in a water depth of approximately 186 metres. The Block contains a newly mapped prospect named Tiger, which lies 5 kilometres to the east of the Magnus field. The Magnus field was brought into production in 1983 by BP with an in-place volume of approximately 1.5 billion barrels of oil.

The target reservoir in the Tiger prospect is the Magnus Sandstone Member, over 500 feet of which was encountered in Well 211/12b-15. This well was drilled down dip of the Tiger Prospect in 1992. The equivalent sands in the nearby Magnus Field have excellent porosity and permeability characteristics. Evidence from the 211/12b-15 well also indicates the presence of a nearby hydrocarbon column. Reservoir presence and hydrocarbon charge for the Tiger prospect are considered to be low risks.

Elixir has now completed various additional technical studies in relation to the Tiger prospect and updated volumetrics have been produced. A data room is now being prepared and it is anticipated that the marketing of the prospect to industry will commence in the coming quarter. The Block has a licence term of 4 years with a drill-or-drop decision required by February 2012.

Gulf of Mexico

Project Name: Red Fish Prospect (Block 479-L N/2 and NE/4) Location: Brazos Area, Offshore Texas, USA Ownership: 25% Working Interest (18.125% Net Revenue Interest) Operator: AnaTexas Offshore Inc.

No significant additional activity was undertaken on this prospect in the March 2010 quarter.

FINANCIAL SUMMARY AND OTHER MATTERS

At the end of the reporting period, Elixir held cash on hand of approximately $6.38 million. Receipts from production received in the March 2010 quarter were approximately $835,000. The Elixir Group is debt free.

Please find attached the Company’s Appendix 5B for the 3 month period to 31 March 2010.

Yours sincerely,

ELIXIR PETROLEUM LIMITED

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Andrew Ross Managing Director

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For further information, please visit the Company's website at www.elixirpetroleum.com, or contact:

Information contained in this report with respect to the High Island and Pompano Projects and the Red Fish Prospect, was compiled by Elixir or from material provided by the project operators and reviewed by I L Lusted, BSc (Hons),SPE , who has had more than 15 years experience in the practice of petroleum engineering. Mr Lusted consents to the inclusion in this report of the information in the form and context in which it appears.

Information contained in this report with respect to the Tiger Project and the Moselle Permit was compiled by Elixir and reviewed by Elixir’s Exploration Director, Iain Knott, BSc, MSc, FGS, AAPG, who has had more than 25 years experience in the practice of geology, including more than 5 years experience in petroleum geology. Mr Knott consents to the inclusion in this report of the information in the form and context in which it appears.

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report

Name of entity

ELIXIR PETROLEUM LIMITED

	ABN 51 108 230 995 Consolidated statement of cash flows		Quarter ended (“current quarter”) 31 March 2010	Quarter ended (“current quarter”) 31 March 2010
			31 March 2010
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – Recovery from JV Net Operating Cash Flows			Current quarter $A’000	Year to date (9 months) $A’000
			835 (181) (65) (292) (367) - 65 - - 26	1,601 (874) (65) (848) (1,231) - 186 - - 160
			21	(1,071)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			(268) - - - - - - - -	(268) - - - - - - - -
			(268)	(268)
			(247)	(1,339)

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(247)	(1,339)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other Convertible Notes Less underwriting fee Issue Costs Net financing cash flows	- - - - - - - - -	- - - - - - - - -
	-	-
Net increase/(decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(247) 6,733 (99)	(1,339) 8,081 (355)
	6,387	6,387

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24 1.25	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 Explanation necessaryfor an understandingof the transactions	Current quarter $A'000
		168
		Nil
	Payments include: Directors’ fees and salaries, and serviced office rental. All payments are o terms.	n normal commercial

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	241
	610
Total	851

Reconciliation of cash

Reconciliation of cash	Reconciliation of cash
Reconciliation of cash at the end of the quarter (as		Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to		$A’000	$A’000
the related items in the accounts is as follows.
5.1	Cash on hand and at bank	6,387	1,924
5.2	Deposits at call	-	4,809
5.3	Bank overdraft
		-	-
5.4	Other (provide details)
		-	-
	Total: cash at end of quarter(item 1.22)	6,387	6,733

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
	None	Nil	-	-
	None	Nil

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security(cents)	Amount paid up per security (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs,redemptions	-	-	-	-
	- -	- -	- -	- -
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	188,988,472	188,988,472	Various	FullyPaid
	- -	- -
7.5 +Convertible debt securities Convertible Notes 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted	-	-
	- -	- -
7.7 Options Ambrian Options Employee Options Tranche 1 Employee Options Tranche 2 Employee Options Tranche 3 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	637,148 1,750,000 3,250,000 2,750,000 8,387,148	- - - -	Exercise price $0.60 $0.25 $0.30 $0.35	Expiry date 16 May 2010 31 Mar 2011 31 Mar 2012 31 Mar 2013
	-	-	Exercise price -	Expiry date -
	-	-	-	-
	-	-	-	-
7.11 Debentures(totals only)	-	-	-	-
7.12 Unsecured notes(totals only)	-	-	-	-

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 30 April 2010 ~~(Director~~ /Company Secretary)

Print name: Julie Foster

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