ELIXIR ENERGY LIMITED — Investor Presentation 2008

Sep 2, 2008

The Good Oil Conference September 2008

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“Our First Good Oil, In A Year of Firsts”
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ASX : EXR, AIM : ELP
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Disclaimer

This presentation has been prepared by Elixir Petroleum Limited (ABN 51 108 230 995).

The information contained in this presentation is an overview and does not contain all information necessar y for an investment decision. The information in this p resentation does not take into account the investment objectives, financial situation and particular needs of investors and does not constitute investment, legal, tax or other advice. In making investment decisions, investors should rely on their own examination of Elixir and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities.

The information contained in this presentation has been prepared in good faith by Elixir. However, no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, Elixir, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted from this presentation.

Certain information in this presentation refers to the intentions of Elixir, but these are intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Elixir's actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Elixir, its directors, officers, employees and agen s o no g ve any assurance or guaran ee t d t i t th a t th e occurrence o f th e even s re erre t f d t o n i thi s presentation will actually occur as contemplated. This presentation is not an offer, invitation, solicitation or recommendation to invest in Elixir and neither this document nor anything in it shall form the basis of any contract or commitment. The distribution of this document in j urisdictions outside Australia ma y be restricted b y law and y ou should observe an y such restrictions.

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

Introduction

• Elixir is an international E&P company with a diversified portfolio of interests across the exploration, appraisal, development and production spectrum

• C t hi c areas o ac f ti v it i l d e: urren geograp y nc u

• Development and Production from the shallow shelf Gulf of Mexico

• Exploration and Appraisal activities in the UK North Sea

• ►Early stage Exploration activities offshore Sierra Leone

• Listed on ASX in 2004 as a North Sea focused explorer - dual listed on AIM in mid-2005

• Merger with Gawler Resources in late 2007 added development and production assets to the portfolio

• Board and management team strengthened following merger

• Capital raising in June and receipts from production means Elixir is funded for growth

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Corporate Profile

Capital Structure

Exchanges: ASX:EXR, AIM:ELP Ordinary shares: 188.9m Unlisted Options: 8.6m Convertible Notes: A$3m @ 35c , 10% cou p on Trading Performance Share Trading Range: 15c – 39c (prior 12 months) Current Share Price: 16.5c Current Market Cap: ~A$31m @ 16.5 cps Av g Tradin g Volume: ~300 , 000/da y Operating Performance 2008 2007 Production (Bcfe): 0.9 Nil Sales Revenue (A$m): 9.1 Nil Cash on hand (A$m) 10.6 4.4

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Operational Profile

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Head Office
Regional Office
Local Reps
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UK North Sea –
Exploration &
Appraisal
–
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Development &
Production
Sierra Leone -
Exploration
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Geographic and Lifecycle Diversification

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High Island Development ( 30%WI )

• Gas and condensate development 65kms offshore Texas in 51m water depth

• T wo we ll s on pro d uct on at approx i 4.5MMscf/d and 200 Bbls/d (100% Project)

• Installation of compression and sleeve -

• change aimed at increasing gas production from Well A-1

• Reservoirs projected to produce for up to another 12 months, then swap to shallower PDNP horizons

• Further sidetrack opportunities once existing producing reservoirs are depleted

• Total sales revenue to Elixir to end of June of approx US$4.9m

• Achieving approx US$450,000/month

• Expecting increased sales following compression and sleeve change

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Pompano Development ( 25%WI )

• Gas re-development project 7km offshore Texas in 18m water depth

• Two wells on production at approx 10 MMscf/d and 50 Bbls/d (100% Project)

• Independent 2P reserves for the two producing wells of 17 . 1 Bcf and 50M bbls ( Source: Ralph E Davies Inc)

• • First sales proceeds received in May - on current prices approx $550,000/month from first two wells

• Well 3 to spud in September - further wells planned for H1, 2009, including Redfish prospect

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Exploration and Appraisal

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UK North Sea
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Offshore, Sierra Leone
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Mulle Appraisal Project ( 40% WI, non-o p erated )

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NNS
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• Jaguar well and Causeway appraisal success led to re-examination of block prospectivity

• 1970’s vintage well with 20m gross oil column in Ness formation - drilled off crest, not tested

• Mulle on trend and down dip from Causeway

• Two well appraisal programme finalised – crest producer (deliverability) and flank injector (STOIIP) – multiple export routes

• Data room now open for farminees

• Anticipating in-field operations in 2009

		1C	2C	3C
		Boe	Boe	Boe
	Project (100%)	4	17	36
	Elixir (40%)	1.6	6.8	14.4

Source: DNO (UK) Limited - Operator

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Leopard Prospect ( 56%WI, o p erator )

• Block 211/18b contains the Leopard Prospect

• Primary play is stratigraphic synrift with Upper J urass c san i d l t i NNS s – new p ay ype n

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NNS Leopard
Prospect
se sm c nes i i li
Borg
Jaguar Field
Well
211/22b-5
NNS
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• Secondary Brent targets

• Mapped structure is tied-in to Norwegian Borg fi e ld ana ogue v a ong o l i l ff se t 2D se sm c nes i i li

• If hydrocarbon prone, most likely OOIP >1BBbls*

• Most likely recoverable resource of approx 350 MMBbl s *

• Traditional licence – drilling election by end of 2008

• farmed o u t to

• Prospect partiall y RWE (JV partner in Borg)

• Plan to complete farmout in 2H 2008 and drill well in 2009

* Unrisked resource estimates

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Central North Sea Exploration
Elixir Petroleum Interests
Central North Sea
15/13b
13/25 ‘F a t C a t’ 12 . 5%
15/13b ’Eagle’ 13.1%
21/4b ‘Muness’ 7%
21/16b ‘B o b C a t’ 40%
21/4b
13/25
C N S
21/16b
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Block SL-4, Sierra Leone ( 15%WI, O p erator )*

• Interest acquired in March 2008 on unpromoted, ground floor terms – mix of cash and shares

• Underexplored frontier basin with few offshore wells

• SL-4 covers 4 , 429km[2] - water depths range from 100m to over 3,000m

• Excellent fiscal terms – production royalty basis

• Wide spaced 2D acquired in 2003

• 1,222 sq km 3D data set completed in June 2008

• Interpretation to end of 2008 – then farmout

• Geology thought to be similar to Ghana and Ivory Coast (conjugate margin setting)

• Anadarko has farmed into SL-6 and SL-7, with well planned for 2009

• Interest will rise to 35% if Option is exercised

Year Ahead

US Gulf of Mexico

• Continuing production from High Island, growing production from Pompano

• Wells 3 and 4 to be drilled at Pompano

• Progress Redfish project

• Ac uisition of interests in further a raisal/develo ment ro ects in the GOM q pp p p j

• North Sea

• Farm out and drill Leopard Prospect – 350+ MMBbl target in 2009

• Farm out Mulle appraisal programme and prepare for drilling mid 2009

• Farm out Bobcat prospects – look to drill in 2009

• Results from UKCS 25[th] Licensing Round in late Q4, 2008

• Sierra Leone

• 3D seismic interpretation through to year end

• Farm out drill ready prospects from Q1, 2009

• New Opportunities

• Funded to pursue opportunities within and outside existing portfolio

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Summary

• Elixir has had a year of firsts

Production, reserves and cash flow Maiden operating profit Entry into West Africa …Presentation at Good Oil

• Elixir has what investors should be seeking

Good Management - a proven team of focused upstream professionals - Great Assets a diversified portfolio of interests with significant upside Well Funded - cash reserves and cashflow from production Excellent Prospects - scheduled drilling activity and further opportunities

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www.elix rpei tro eum.com l

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