ELIXIR ENERGY LIMITED — Investor Presentation 2010

Feb 16, 2010

ASX ANNOUNCEMENT

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ABN 51 108 230 995

17 February 2010

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

INVESTOR PRESENTATION – MOSELLE PERMIT

Please find attached to this letter a copy of a presentation concerning the acquisition of the Moselle Permit in North-eastern France which will be used by Elixir Petroleum Limited in giving presentations to investors and Australian broking firms in the coming week.

Yours faithfully, ELIXIR PETROLEUM LIMITED

Julie Foster Company Secretary

Information contained in this announcement and the attached presentation with respect to the Moselle Permit, was compiled from material reviewed by the Company’s Exploration Director, Mr. I Knott, MSc (Hons), who has had more than 15 years experience in the practice of petroleum geology. Mr Knott consents to the inclusion in this report of the information in the form and context in which it appears.

ASX CODE: EXR

Elixir Petroleum Limited

www.elixirpetroleum.com

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

Acquisition of Moselle Permit, France 17 February 2010

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(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 anal y sts/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 p otential investor should consider in evaluatin g 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 p resentation and its contents have been made available in confidence and ma y not be re p roduced or disclosed to third p arties 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 ex p loration, a pp raisal, develo p ment and p roduction s p ectrum

• Current geographic areas of activity include:

• Development and Production from the shallow shelf Gulf of Mexico

• Exploration and Appraisal activities in the UK North Sea

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

• Observed dramatic growth in unconventional plays - CBM (Aust), gas shale (USA) and tar sands (Canada)

• Have agreed to acquire 100% of the Moselle Permit located onshore France

• Presentation discusses -

• ►Overview of Moselle Permit

• ►France and Europe as a market in which to operate

►U nconven ti ona l h y d rocar b on resource exp o l it a ti on - emerg ng area o grow i f th

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Corporate Profile

Capital Structure Exchange: ASX:EXR Ordinary shares: 188.9m Unlisted Options: 8.4m No of Shareholders: ~1,550 Top 20 Shareholders: 48% Cash on Hand: ~$6.75m Cash per Share: $0.036

Trading Performance Sh are ra T di ng ange: R $0 . 03 – $0 . 10 (prior 12 months) Production Performance Current Share Price: $0.041 High Island - Project 30% WI Current Market Cap: ~$7.7m Gas (mmscf/d): 0.4 0.1 Avg Trading Volume: ~370,000/day Condensate (bbls/d): 190 57 Operating Performance 31/12/08 30/6/09 - Pompano Project 25% WI P ro d uc ti on (B c e f ) : . 0 4* 0 6. Gas (mmscf/d): 6.1 1.7 Sales Revenue (A$m): 4.2 5.6 4 _ 6 months_ Condensate (bbls/d): 4 1

Operational Profile

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Head Office
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Regional Office
Local Reps
UK North Sea –
Exploration &
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Gulf of Mexico –
Onshore France
Development &
– Ex p loration
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Geographic and Lifecycle Diversification

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Moselle Permit Overview

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

• • Paris Basin encompasses most of Northern France and extends into Luxembourg, Belgium and Germany

• Paris Basin is an established hydrocarbon province –

• Basin has produced 275 MMbbls of oil and 120 Bc f of gas

• Moselle is or 5,360 km[2]

• 1 34 million acres. in area:

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Paris
Basin
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• Largest onshore exploration permit in France

• Equivalent in size to 27 UK North Sea Blocks

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’ Moselle Permit Overview (cont d)

• Moselle Permit awarded to East Paris Petroleum Development Ltd (“EPPDL”) in January 2009 for an initial 5 year term

• Elixir acquiring EPPDL for firm US$1m expenditure commitment in 2010 plus royalty on production

• Additional consideration of US$1m if well drilled or Permit sold

• A cqu s i iti on su bj ec t t o renc F h Government review – expected to be completed by mid-April 2010

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

• Approx €300 , 000 spent during 2009

• No well commitments

• Further extensions of Permit term of up to five years available

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’ Moselle Overview (cont d)

• Locally there is a demonstrated hydrocarbon system:

• Multiple hydrocarbon indicators from logs

• – Offset production history

• Regionally there is 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 (Torreador, Paris Basin)

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Source: IHS
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’ Moselle Overview (cont d)

• Over 4,000 km of historical 2D seismic in Permit area

• • 21 oil and gas wells d r ill e d i n erm P it an d over a un h d re d mineral core holes

• More than half of the wells drilled had oil and/or gas shows

• • • • •

Exploration Well Density USA Europe Moselle No. wells per 1,000km2 36 9 4 Little oil and gas activity in the East Paris Basin since the mid-1990’s The small Forcelles shallow oil field discovered in 1978 and produced from permit area during the 1980’s Undeveloped gas discoveries in Attila Permit west of Moselle Adjacent Lorraine Permit has independent resource estimate for CBM of 3.7 Tcf of gas Work programme for 2010 being developed for submission

France as a Market

• Strong market fundamentals

• • E s a t bli s h e d Oil an d G as n i d t us ry:

• – Underexplored and neglected in recent years

  • Established regulatory framework

• Multiple plays

• Innovation and technology stimulating activity

• Robust historic gas prices

• Significant domestic gas demand:

• Net imports ~1.5Tcf / year and growing

• Security of supply is a major concern for Western Europe

“Continental Europe has recently seen a true boom in exploration efforts for unconventional resources. New prospective acreage is being pursued vigorously…by the majors.”

(Source: IHS Geneva, November 2009)

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2,000 [France ‐ Gas Consumption v Production]
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 Consumption (BCF)
Natural Gas Prices ‐ Europe & USA
$18 . 0
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
$4.0
$2.0
$0.0
Sep‐06 Mar‐07 Sep‐07 Mar‐08 Sep‐08 Mar‐09 Sep‐09
Natural gas, Europe Natural gas, US
BCF
btu
US$/mm
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’ France as a Market (cont d)

• Low sovereign risk with supportive and stable government • Attractive fiscal terms – superior to US onshore

	Fiscal Terms Onshore Commodity Production Rates Royalty Rate Oil Gas Tax Rate US Oil and Gas All Production ~25% ~25% 30% France Oil 0 1 000 bbls/d 33 33% – , - . 1,000 – 2,000 bbls/d 6% 2,000 – 6,000 bbls/d 9% >6,000 bbls/d 12% Gas <30mmscf/d - >30mmscf/d 5%

“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)

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’ France as a Market (cont d)

• Gas pipeline infrastructure and gas markets well developed Significant existing capacity for large new gas discoveries Even small discoveries are likely to be commercially viable

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Moselle Permit

Gas Pipeline

Oil Pipeline
___
Product Pipeline
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’ Unconventional Resources (cont d)

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“The biggest deve opmenl t of the rsfi t decade of the 21st century s noi t so ar, l not wind, but unconventional gas.”

(Source: Daniel Yergin, Chairman, Cambridge Energy Research Associates, January 2010)

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Unconventional Resources are Valuable

• The European Majors missed the US gas shale boom

• Buying in now to access knowledge and technology to take back to Europe

Purchaser Date Location Acres Price (USD) Price / Acre Shell Jul 08 Haynesville Shale (TX) 135 000 US$6 000m [Not disclosed] , , BP Sep 08 Fayetteville Shale (LA) 325,000 US$1,900m $14,074 / acre StatoilHydro Nov 08 Marcellus Shale (PA) 600,000 US$3,400m $5,800 / acre ENI May 09 Barnett Shale (TX) 13,000 US$280m $21,500 / acre BG Group Aug 09 Haynesville Shale (TX) 120,000 US$1,130m $9,392 / acre Total Jan 10 Barnett Shale (TX) 250,000 US$2,050m $8,200 / acre VWAP $8,800 / acre Elixir Feb 10 East Paris Basin (Fr) 1,340,000 US$1.0m $0.75 / acre

“Unconventiona gas s a comp el i l te game changer n i the US, proit bably ranst forms the US energy outlook for the next 100 years”

(Source: Tony Hayward, 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

• US majors bringing to Europe their US shale experience and technology

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

“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)

Moselle Summary

Asset –

• Operatorship and 100% ownership

Market -

• Low sovereign risk , stable , supportive government

• Very large acreage position

• Large existing domestic gas market

• Working hydrocarbon system

• Declining domestic gas production

• Extensive existing well and seismic database

• Increasing gas consumption and im orts p

• Multiple play potential

• Concerns over security of supply

• Onshore cost base

• Robust commodity pricing

• Low entry price

• Attractive fiscal regime

• Modest work programme

• Well established oil and gas industry

• No well obligations

• Extensive gas pipeline infrastructure

• 4 year term remaining

• Majors moving back into region

• Further extensions available

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’ Moselle Summary (cont d)

• Work programme at Moselle kicking off immediately

• Analyse extensive existing well and seismic database to identify areas of prospectivity. Targets to include:

• Conventional gas

• Tight gas

• Gas shale

• CBM

• Discussions with potential JV partners have commenced

• Elixir is fully funded to undertake proposed work programme

• Actively seeking further opportunities in Europe and elsewhere

• Acquisition of Moselle provides Elixir with currency to participate in emer g in g unconventional resource p la y s in Western Euro p e

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www.elixirpetroleum.com

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