ELIXIR ENERGY LIMITED — Investor Presentation 2010

Sep 7, 2010

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ASX RELEASE

8 SEPTEMBER 2010

COMPANY PRESENTATION MATERIAL

Please find attached to this document a copy of the presentation slides to be used by Elixir Petroleum Limited in presentations being conducted at the RIU Good Oil Conference in Perth today.

For Elixir Petroleum Limited

Julie Foster Company Secretary

Information contained in this presentation with respect to the High Island and Pompano Projects was compiled by Elixir or from material provided by the project operators and reviewed by Elixir’s Operations Manager, Ian 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 presentation with respect to the Tiger Project and the Moselle Projectt 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.

8 The Courtyard Eastern Road Bracknell Berkshire RG12 2XB Tel: +44 1344 423 170 Fax: +44 1344 360 268 Website: www.elixirpetroleum.com

Level 20 77 St George’s Terrace Perth WA 6000 Western Australia +61 8 9440 2650 +61 8 9440 2699 ABN 51 108 230 995

The Good Oil Conference 8 September 2010

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Andrew Ross, Managing Director
(ASX:EXR)
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Important Notice and Disclaimer

This document has been prepared by Elixir Petroleum Limited (ABN 51 108 230 995) (“Elixir”) in connection with providing an overview of its business to interested analysts/investors.

This presentation is being provided for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of Elixir. This presentation is thus by its nature limited in scope and is not intended to provide all available information regarding Elixir. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating Elixir.

Elixir and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. No responsibility or liability is accepted and any and all responsibility and liability is expressly disclaimed by Elixir and its affiliates, subsidiaries, directors, agents, officers, advisers and employees for any errors, misstatements, misrepresentations in or omissions from this presentation. Elixir accepts no obligation to correct or update anything in this presentation.

Any statements, estimates, forecasts or projections with respect to the future performance of Elixir and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Elixir's management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis which, whilst reasonably formulated, cannot be guaranteed to occur. Accordingly, no representations are made by Elixir or its affiliates, subsidiaries, directors, officers, agents, advisers or employees as to the accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guarantee of value or future results; and there can be no assurance that the projected results will be achieved.

Prospective investors should make their own independent evaluation of an investment in Elixir.

Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001 (Cth). This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. This presentation does not take into account the objectives, financial situation or needs of any person, and independent personal advice should be obtained.

This presentation and its contents have been made available in confidence and may not be reproduced or disclosed to third parties or made public in any way without the express written permission of Elixir.

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

Overview

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

• During 2009 evaluated a large number of new play types and opportunities in a variety of regions

• Observed the emergence and development of unconventional plays - CBM (Aust), gas shale (USA) and tar sands (Canada)

• Sought out and secured interest in large permit onshore France with unconventional gas shale potential

• Current geographic areas of activity now include:

• Development and Production from the shallow shelf Gulf of Mexico

• Exploration and Appraisal activities in the UK North Sea and onshore France

Drill Core from Lorettes #1 well, Lorraine Basin

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Corporate Profile

Capital Structure

Exchange: ASX:EXR Ordinary shares: 188.9m Unlisted Options: 7.8m No of Shareholders: ~1,500 Top 20 Shareholders: ~47% Cash on Hand: ~$4.2m Cash per Share: $0 . 022

Trading Performance

Share Trading Range: $0.04 – $0.07 (prior 12 months) Current Share Price: $0.064 Current Market Cap: $12.1m Avg Trading Volume: approx 400,000/day

Operating Performance 31/12/09 30/6/09_ Production (Bcfe): 0.3 0.6 Sales Revenue (A$m): 1.2 5.6 _ 6 months

AUT Insto Retail

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Moselle - Overview

• Moselle permit is located in the East Paris Basin, North-Eastern France

• Moselle is currently largest onshore exploration permit in France

• 5,360 km[2] or 1.34 million acres in area

• Completed acquisition April ‘10

• Elixir - 100% owner and operator

• Work commitment during initial term to the value of €3m:

• No drilling or other defined work commitments

• Approx €300,000 spent - 2009

• A further €400,000 - 2010

• Permit term runs through to 2014

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Paris
Basin
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• Further extensions to term of up to five years available

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Moselle – Overview (cont’d)

• Little oil and gas activity in the East Paris Basin since the mid-1990’s

• • Until now no systematic evaluation of unconventional resource potential

• Over 50 oil and gas wells drilled in and adjacent to the Permit

  • More than half have oil and/or gas shows

• Over 3,400 km of historical 2D seismic in Permit area

• Regional multiple play potential:

• Conventional Oil and Gas ( Forcelles and Le Trois Fontainne )

• Tight Gas ( PLM 2, Atila Permit )

• Gas Shale ( Gironville well, Moselle permit )

• Coal Bed Methane ( Folschviller 2 well, Lorraine Permit )

• Oil Shale ( Toreador, Paris Basin )

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European Gas
European Gas
Lundin &
GDF
Vermillion
Gali Coz &
Tethys Oil
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France as a Market

• Low sovereign risk with supportive and stable government

• Attractive fiscal terms which are superior to US onshore

• Gas pipeline infrastructure and gas sales markets well developed

• Small discoveries are likely to be commercially viable

• Significant existing capacity for large new gas discoveries

• Existing Oil and Gas industry

• Robust historic gas prices

• Significant domestic gas demand

• Security of supply a major concern for Western Europe

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France - Gas Consumption v Production
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Annual Gas Production ( BCF ) Annual Gas Consum p tion ( BCF )
Natural Gas Prices - Europe & USA
$18.0
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
$4.0
$2.0
$0.0
Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09
Natural gas, Europe Natural gas, US
BCF
US$/mmbtu
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“Continental Europe has recently seen a true boom in exploration efforts for unconventional resources. New prospective acreage is being pursued vigorously”

(Source: IHS Geneva, November 2009)

Moselle - Overview (cont’d)

• Technical work program to deliver in Q4, 2010:

Detailed examination of unconventional gas shale prospectivity STOIIP and recoverable prospective and contingent resource estimate for Permit

Independent certification of volumetrics

• Assembled comprehensive subsurface database of well reports, geodetic locations, well logs, seismic data, cores, cuttings etc

• Approx 550 kms of 2-D seismic data currently being processed and re-interpreted

• Detailed geochemical and petrophysical evaluation of ten drill cores and cuttings samples is underway

• Attract a partner to support a drilling programme

• “We underestimate what [shale gas] could do to the world in the next 10 to 20 years. It’s a big deal and necessary — globally.”

(Source: Peter Voser, CEO, Royal Dutch Shell PLC, January 2010)

Unconventional Resources are Valuable

• The European Majors missed the early phase of the US gas shale boom

• Buying in now to access and transfer knowledge and technology internationally

Purchaser	Date	Location	Acres (Net)	Production	Price (USD)	Price / Acre
Shell	Jul 08	Haynesville Shale (TX)*	135,000	[Not Disclosed]	US$6,000m	[Not disclosed]
BP	Jul 08	Woodford Shale (OK)	90,000	50 MMscfe/d	US$1,750m	$19,444 / acre
BP	Sep 08	Fayetteville Shale (LA)	135,000	45 mmscfe/d	US$1,900m	$14,074 / acre
StatoilH dro y	No 08 v	Marcell s Shale (PA) u	585 000 ,	Nil	US$3 375m ,	$5 769 / acre ,
ENI	May 09	Barnett Shale (TX)	3,600	48 MMscfe/d	US$280m	$77,700 / acre
BG Group	June 09	Haynesville Shale (TX)	60,000	78 MMscfe/d	US$1,055m	$18,783 / acre
Mitsui	Feb 10	Marcellus Shale (PA)	100,000	Nil	US$1,400m	$14,000 / acre
Total	April 10	Barnett Shale (TX)	67,500	700 MMscfe/d	US$2,250m	$33,330 / acre
StatoilHydro	Mar 10	Marcellus Shale (PA)	59,000	Nil	US$253m	$4,288 / acre
WAP / acre						$11,605 / acre

• Included other assets Source: Company announcements, Credit Suisse

“Unconventional gas is a complete game changer in the US, it probably transforms the US energy outlook for the next 100 years” (Source: Tony Hayward, Former Chief Executive Officer, BP Plc, January 2010)

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Unconventional Resources in Europe

• The Majors are back onshore Europe pursuing unconventional resources

Name	Target	Country
ExxonMobil	Tight and shale gas	Germany, Hungary and Poland
OMV	Shale Gas	Austria
ConocoPhillips	Shale Gas	Poland
Royal Dutch Shell	Tight Gas, Shale Oil and Gas	Ukraine and Sweden
Total	Shale Oil and Gas	France
BG Group	Tight and Shale Gas	France
Marathon Oil	Shale Gas	Poland
Hess Corp	Shale Oil	France

• Bringing to Europe US unconventional experience and technology

• ExxonMobil, StatoilHydro, GDF Suez, Vermillion, Marathon, Total jointly sponsoring European gas shale research

• Elixir active participant in CoreLab’s European Gas Shales study group

• “The last 18 months have seen something of a land grab. ExxonMobil, ConocoPhillips,

• Shell, OMV and other large producers are now in control of tracts of land across the EU.”

(source: Petroleum Economist, Dec 2009)

Paris Basin Transaction

• In May 2010 Hess Corp farmed into 50% of Toreador’s oil shale permits in Paris Basin

• Toreador hold 680,000 awarded acres and 360,000 acres pending award

• Consideration paid by Hess to Toreador of up to US$265m

	US$m
Upfront cash payment	$15m	Moselle
Phase 1 Drilling	$50m
Phase 2 Drilling	$70m
Contingent Reserves Fee (up to)	$80m
Contingent Production Fee (up to)	$50m
Total	$265m

• Equates to a valuation of approx $260 to $510 / acre

• Elixir acquired Moselle for the equivalent of 75c / acre

Hess acquisition provides a benchmark for future unconventional transactions

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Moselle Summary

Asset –

Market -

Risks -

�	Operatorship and 100%	�	Low sovereign risk, stable,	?	Geology of unconventional
	ownership		supportive government		not yet well understood
�	Very large acreage position	�	Large existing domestic gas	?	Potential resources in
� �	Working hydrocarbon system Extensive existing well and seismic database	�	market Declining domestic gas production	?	Europe smaller in aggregate than the US Currently limited availability
� � �	Multiple play potential Onshore cost base Low entry price	� �	Increasing gas consumption and imports Concerns over security of supply	?	of drilling and stimulation services Higher population densities than US
� �	Modest work programme No well obligations	�	Historically robust commodity pricing	?	Stringent environmental constraints to adhere to
�	4 year term remaining	�	Attractive fiscal regime	?	Relatively higher operating costs than the US
�	Further extensions available	�	Existing oil and gas industry
		�	Extensive gas pipeline
			infrastructure
		�	Majors moving back into
			region

Unconventional plays still to be proven in Europe, but signs are promising

Gulf of Mexico - Shallow Shelf

• High Island (30% WI, non-operated)

• Gas and condensate discovery in Feb 07 - two wells on production since Sep 07

• Total cumulative production to date 3.9 Bcf and 140,000 Bbls

• Field producing at approx 150 Bbls/d condensate and minor amounts of gas (100% project)

• Imminent workover of both wells to enable production from shallower horizons

• Awaiting availability of suitable workboat and resolution on moratorium on use of BOP stacks in the GOM

• Pompano (25% WI, non-operated)

• Gas field re-development project - two wells on production since May 2008

• Total cumulative production to date of 5.1 Bcf gas and 5,380 Bbls condensate

• Field currently producing at approx 5.7 MMscf/d gas and minor amounts of condensate ( 100% project)

• Considering future options for interests in fields

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UK - Northern North Sea

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NNS
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• Tiger Prospect (100% WI, Operator)

• Block 211/12b contains the Tiger Prospect

• Awarded under 25[th] Round in 2009

• Licence term 4 years

• Drill-or-drop well commitment by 2012

• Magnus sands play type located next to 1.5Bn Bbl+ Magnus field operated by BP

• Down-dip well analysis indicates hydrocarbons nearby

• Technical work completed to better define geobody and reserves

14 geobody and reserves – Marketing to industry commenced Q3, 2010 Project (100%) Low ML High (MMBbls) (MMBbls) (MMBbls) STOIIP 47 180 278 Recoverable Resource 19 90 167	14 geobody and reserves – Marketing to industry commenced Q3, 2010 Project (100%) Low ML High (MMBbls) (MMBbls) (MMBbls) STOIIP 47 180 278 Recoverable Resource 19 90 167	14 geobody and reserves – Marketing to industry commenced Q3, 2010 Project (100%) Low ML High (MMBbls) (MMBbls) (MMBbls) STOIIP 47 180 278 Recoverable Resource 19 90 167	14 geobody and reserves – Marketing to industry commenced Q3, 2010 Project (100%) Low ML High (MMBbls) (MMBbls) (MMBbls) STOIIP 47 180 278 Recoverable Resource 19 90 167
Project (100%)	Low	ML	High
	(MMBbls)	(MMBbls)	(MMBbls)
STOIIP	47	180	278
Recoverable Resource	19	90	167

Summary

France

• Technical workscopes kicked off and several approaching completion

• In place resource estimate expected in Q4, 2010

• Marketing of Moselle for farmout thereafter

GOM

• Production continuing, gas prices in GOM still soft

• Workover of High Island depending on workboat availability

• Considering other options with respect to GOM interests

• North Sea

• Marketing of Tiger commenced in August 2010

• Working through data room process now - offers by the end of Q4, 2010

• Woking through alternatives for the appraisal of Mulle

Very active at the moment, on track for an exciting 12 months in Europe

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www.elixirpetroleum.com

Information contained in this presentation with respect to the High Island and Pompano Projects, was compiled by Elixir or from material provided by the project operators and reviewed by Elixir’s Operations Manager, Ian 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 presentation 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.