ELIXIR ENERGY LIMITED — Investor Presentation 2011

Sep 15, 2011

ASX ANNOUNCEMENT

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ABN 51 108 230 995

16 September 2011

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

COMPANY PRESENTATION MATERIAL

Please find attached to this document a copy of the presentation slides to be used by Elixir Petroleum Limited at investor presentations being conducted today in Perth, Australia.

Yours faithfully, ELIXIR PETROLEUM LIMITED

Julie Foster Company Secretary

Encl. 1

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

Moselle Permit Independent In-Place Volumetric Assessment 16 September 2011

Managing Director

(ASX:EXR)

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

• Internationally focused oil and gas company with interests in conventional and unconventional exploration and production assets

• Current geographic areas of activity are:

• Development and Production from shallow shelf Gulf of Mexico

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

• Completed technical programmes and volumetric assessment of conventional and unconventional hydrocarbons in 1.34 million acre Moselle Permit, Paris Basin

• Independent in-place hydrocarbon volumetric estimate from NSAI achieved:

• Unconventional: 164.7 Billion bbls OOIP and 649.7 Tcf OGIP

• – Conventional: 2.1 Billion bbls OOIP or 2.2 Tcf OGIP[#]

• A number of large, drill ready conventional targets have been defined

• Kicking off design, procure and permitting of up to 3 well drilling campaign for 2H, 2012

  • most likely, unrisked, gross in-place estimate # mean, unrisked, gross in-place estimate

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Drill Core from the Lorettes #1 Well, Paris Basin
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Corporate Profile

Capital Structure at 9 Sep 2011 2% Aurora 12.7% Exchange ASX:EXR Insto 70.8% Ordinary Shares 188.9m 16.5% Retail Unlisted Options (held by staff) 6.0m Directors No of Shareholders 1,450 Top 20 Shareholders 52.9%

Trading Performance at 9 Sep 2011 Trading Range (prior 12 months) $0.03 – $0.25 Current Share Price $0.038 Market Capitalisation $7.2m Trading Volume (p/day prior 3 ~300,000 months) Cash on Hand $1.0m

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Moselle Permit Overview

	Location	Onshore, NE France
	Area	5,360 km2
Vermillion Lundin & GDF European Gas Gali Coz & Tethys Oil Paris Basin		1,340,000 acres
	Ownership	100%
	Term	5 years
	Expiry	Feb 2014
	Extensions	Yes, 2 x 5 years
	2D Seismic	~2,500km
	Wells on Block	24
	Oil and/or gas shows	46%
	Prospectivity	Conventional oil/gas tight gas, gas shale,
	Total Commitment	€3,000,000
	Spend to Date	~€1,500,000

Largest acreage position of any company in Paris Basin, being one of the largest and most prospective hydrocarbon basins in Europe

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CONVENTIONAL RESOURCES

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Moselle – Conventional Geological Characterisation

• Conventional hydrocarbon exploration and production in Paris Basin for >60 years Over 275MMBbls of oil and 120Bcf of gas produced from Basin Small oil field produced in Moselle Permit area in 1980’s

• Large Triassic gas field on production 40km west of Moselle

• Carboniferous is oil and gas source rock for conventional Triassic aged accumulations

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Moselle - Conventional NSAI Estimate

• Total of 19 conventional prospects and leads mapped

• Located within 4 main reservoir units in Triassic and Upper Carboniferous Section Mainly 4 way dip closed structural traps

• Three multi-horizon prospect groups identified – each can be investigated with one well

• NSAI mean unrisked gross undiscovered in-place estimate - 2.12 Bbbls or 2.18 Tcf Two independent volumetric outcomes prepared (ie. 100% oil, or 100% gas) NSAI give equal likelihood to either oil charge or gas charge

			OOIP (MMBbls)	OOIP (MMBbls)
		Depth Top Structure		Low Estimate	Best Estimate		High Estimate
Reservoir	No of Targets	(TVDss/m)		(P90)	(P50)	Mean	(P10)
Triassic	4	460 - 800		36.0	109.2	160.7	334.5
Top Carboniferous	7	600 - 1,300		146.3	560.9	1,081.6	2,349.6
C5	4	1,250 - 2,200		33.2	239.4	657.3	1,496.9
C4	4	1,700 -	2800	18.5	97.6	217.1	485.8
Total(1)	19			234.0	1,007.10	2,116.7	4,666.8
			or, alternatively...

		OGIP (Bcf)	OGIP (Bcf)
		Depth Top Structure	Low Estimate	Best Estimate		High Estimate
Reservoir	No of Targets	(TVDss/m)	(P90)	(P50)	Mean	(P10)
Triassic	4	460 - 800	20.5	61.0	88.5	182.4
Top Carboniferous	7	600 - 1,300	127.9	440.3	775.5	1,670.0
C5	4	1,250 - 2,200	46.0	335.2	951.6	2,179.3
C4	4	1,700 - 2800	30.1	160.3	366.9	804.2
Total(1)	19		224.7	996.60	2,182.5	4,836.1	8

Moselle – Conventional Forward Programme

• Prospects are considered ‘drill ready’

• Three wells could investigate +70% of the Mean in-place oil/gas volume

Drilling costs modest for onshore, relatively shallow targets

• 2D seismic covers only ~35% of the Permit

Prospectivity in balance of Permit still to be determined

• New seismic could elevate existing leads to prospect status

• Exploration programme for 2012

• C ommence p ann ng, procurement an l i d perm tt ng act v t es i i i i i for up to 3 well campaign

Triassic and Top Carboniferous Prospects Map

Drilling estimated in 2H, 2012*

Target high graded prospects - including multi-horizon Nancy South Group (Mean in-place 1.2BBbls or 1.2Tcf)

Investigating possible aerial grav/mag survey and acquisition of additional 2D seismic

• Identify partners to assist with exploration programme Commencing discussions with industry participants

Foug Prospect - seismic cross-sections and top structure map

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* Subject to rig and equipment availability and receipt of final permitting approvals

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UNCONVENTIONAL RESOURCES

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Moselle – Unconventional Geological Cross Section

• The thermal maturity windows allow oil, condensate and dry gas to be present

• Hydrocarbon generation continues at the present time

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Moselle – Unconventional NSAI Estimate

• Significant total in-place undiscovered hydrocarbon estimate provided by NSAI

• 164.7 BBbls of oil and 649.7 Tcf of gas (P50, unrisked)

• Small quantities of gas have already been produced to surface from the Carboniferous Section from two unstimulated wells in the area

• Prior mini-fracs undertaken by ConocoPhillips of three zones in Saulcy well

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Moselle – Unconventional Analogous to Piceance Basin

Reservoir Properties	Moselle Permit Paris Basin, France	Piceance Basin Colorado, USA
Age	Paleozoic (Carboniferous)	Mesozoic (Cretaceous)
Deposition	Fluvial and lacustrine	Fluvial and lacustrine
Source	Interbedded gas-prone shales, mudstones, siltstones, and coals	Interbedded gas-prone shales, mudstones, siltstones, and coals
Play	Basin-centred gas trap	Basin-centred gas trap
Permit/Basin Area	5,360km2	~6,000km2
Depth (TVDss)	600m - 4,750m	1,360m – 2,575m
Average Thickness (Gross)	~3 500m ,	~1 050m ,
TOC Range	2% - 15% (mean: 9%)	~2%
Pressure	Normally Pressured (?)	Over Pressured
Permeability	1.4µD - 1.3mD	0.1µD - 0.1mD
Porosity	0.8% – 11.4%	2% - 12%
Frac Gradient	0.65 psi/ft	0.6 psi/ft – 0.7 psi/ft
Kerogen Type	Mixed (Type 2 / Type3)	Mixed (Type 2 / Type 3)
OGIP (P50)	649.7 Tcf	+300 Tcf
OGIP (Bcf/km2)	29 – 54	23 - 46
OGIP Density (Bcf/km2/m)	0.06	0.03 – 0.05
EUR Gas (P50)	[To be determined]	~15%

“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)

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Moselle – Unconventional Forward Programme

• Likelihood of substantial liquids rich gas adds to the economics of the play

• Additional data required to prove up unconventional play -

• Fluid types, net to gross, pressure, fracture orientation, rock mechanics etc

• Cannot currently fracture stimulate Carboniferous –

• Can still drill , log , core , test , assay samples

• • Investigate Carboniferous through pilot hole drilling of conventional targets

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Hydrocarbon S2 (mg/g)
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COMMERCIAL AND VALUATION

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France Market

• Strong market fundamentals

• Established Oil and Gas industry -

• Underexplored and neglected in recent years Multiple plays

• Innovation and technology stimulating activity

• Robust historic gas prices –

• Gas prices linked to crude oil – term contracts Significantly ahead of US prices, and growing

• Significant domestic oil and gas demand: Net importer: ~1.7Tcf/year and 622 mmbbls/year and rising

• 98.6% of all gas and 95.8% of all liquid hydrocarbons are imported

Security and cost of supply a concern16

France Infrastructure

• Gas pipeline infrastructure and gas markets well developed

• Existing transport and refining capacity for new discoveries

• Onshore cost base means even small discoveries likely to be commercially viable

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Moselle Permit

Gas Pipeline

Oil Pipeline
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Product Pipeline 17
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France Regulatory Position

• July 2011 French Parliament passed law which now prohibits “hydraulic fracture stimulation of wells following drilling”

• Legislation was strongly debated and only narrowly adopted

• National Commission established to consider advances in fracing practices and technology and to make recommendations to the Government and Parliament

• Unclear as to timeframe as to if, or when, this position will change

• Possible developments to promote change include –

Technolo gy -

‘Clean Stim’ frac fluids, non-toxic ‘GasFracs’ using NGL’s, not water ‘Osorb’ silica filtration, breakthrough tech Pulse drilling technologies 100% recycling & reuse of produced frac water

Practice -

Fracing Best Practice Guidelines EU Shale Guidelines – 2Q, 2012 DOE Fracing Study – 2012 Quebec Fracing Study – 2012 Shale gas success in Eastern Europe

• France highly dependent on imported hydrocarbons – costly, security of supply?

France	% of Total Consumption	Est Cost	% of Total Imports	% of GDP
Oil Imports (2008)	95.8%	$57 billion	13%	3%
Gas imports (2009)	98.6%	$18 billion
TOTAL		$75 billion

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Europe Unconventional Players

• The Majors and Independents are back in Europe pursuing unconventional resources

Name	Target	Country
ExxonMobil	Tight and shale gas	Germany, Poland
OMV	Shale Gas	Austria
ConocoPhillips	Shale Gas	Poland, France
Royal Dutch Shell	Tight Gas, Shale Oil and Gas	Ukraine, Sweden
Total	Shale Oil and Gas	France, Poland
BG Group	Tight and Shale Gas	France, UK
Chevron	Shale Gas	Bulgaria
Marathon Oil	Shale Gas	Poland, Ukraine, UK
Hess Corp	Shale Oil	France
Talisman Energy	Tight and Shale Gas	Poland
RWE Dea	Tight and Shale Gas	Poland
Eni SpA	Shale Gas	Poland
Mitsui	Shale Gas	Poland
Encana	Shale Gas	Poland

“Continental Europe has recently seen a true boom in exploration efforts for unconventional resources. New prospective acreage is being pursued vigorously” (Source: IHS Geneva)

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Valuation Comparable Transactions

• A&D activity ongoing despite period of regulatory uncertainty in France

• Jul 2011 - ConocoPhillips into Realm Energy Paris Basin applications – $[undisclosed] Aug 2011 - Realm Energy takeover by San Leon - $140m

• Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres

• Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin

• Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle

Shale Gas and Shale Oil - Australia

Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle	Aug 2011 - Realm Energy takeover by San Leon - $140m Jul 2011 - Sterling Resources, new applications Paris Basin – 150,000 acres • Hess intends to commence 6 well campaign 2012 targeting oil shale in Paris Basin • Recent basin scale transactions in Australia provide guidance as to possible valuation metrics for Moselle
Shale Gas and Shale Oil - Australia
Location	Parties	Date	Deal Value	Acres	$/net acre	Remarks
Canning Basin	Mitsubishi and Buru	June, 2010	$152m	18m	$8	Mitsubishi acquires 50% WI
Galilee Basin	CNOOC and Exoma	Dec, 2010	$77m	6.7m	$11	CSG project, CNOOC acquires 50%, plus equity in Exoma
Beetaloo Basin	Falcon Oil and Hess	Feb, 2011	~$100m	4.2m	$24	Hess acquires 62.5%. Total undiscovered prospective resources similar to Moselle
Canning Basin	New Standard and Chevron	July, 2011	$110m	11m	$10	Chevron to acquire 75%. No prospective resource estimate
Cooper Basin	Drillsearch and BG	July, 2011	$130m	500,000	$260	BG acquires 60% WI plus 9.9% warrant in DS
Paris Basin	Elixir Petroleum	April, 2010	$1m	1.3m	$0.75	Elixir acquires 100% of Moselle Permit

“The power of the shale gas revolution has surprised everyone”

(Source: Christof Ruhl, Chief Economist, BP Plc)

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SUMMARY

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Moselle Investment Highlights

• Land holding is key - world scale acreage position

• � Largest net acreage position of any company in Paris Basin

• Acreage Position � 100% ownership and operatorship - likely to be attractive to a major � Paris Basin has significant resource prospectivity among European basins � Independent assessment of in-place volumes attained

• Resource � Significant conventional and unconventional hydrocarbons in place � Likelihood of substantial liquids associated with gas in unconventional play � Europe requires a cheap, abundant, domestically produced energy source

• Market � Attractive fiscal terms and high gas prices historically � Rocks won’t change while we await softening in French policy position � Clear direction focused on proving up potential through drilling

• Forward Programme � Drill ready prospect – large multi-horizon targets, relatively shallow drilling � Large equity position provides flexibility when it comes to funding

Significant currently unrecognised value in Moselle portfolio of conventional prospects to be demonstrated through drilling activity expected in 2012

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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 UK North Sea Projects 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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ADDITIONAL SLIDES

Operational Profile

Geographic and Lifecycle Diversification

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Unconventional Resources Europe

• EIA estimates France hosts 720Tcf OGIP and 180Tcf of technically recoverable shale gas

• Source: EIA 2011 World Shale Report (April, 2011)

“The biggest development of the first decade of the 21st century is not solar, not wind, but unconventional gas.” (Source: Daniel Yergin, Chairman, IHS CERA)

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Paris Basin

Geological Characterisation

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Moselle Permit
LIAS OIL SHALE
TRIASSIC AND TOP
CARBONIFEROUS
CONVENTIONAL OIL & GAS
CARBONIFEROUS TIGHT
SANDS AND SHALES
TRIAS
LIAS
CARB
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Source: P. Chungkham, “Paris Basin offers opportunities for unconventional hydrocarbon resources”, Jan 2009
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Moselle Permit Technical Workscopes

Activity	Status
Acquisition and Digitisation of 450 km of well log data	�
Detailed Petrophysics Analysis of 20 wells	�
Core and Cuttings Sampling from existing wells (600+ samples)	�
Detailed Core and Cuttings Analysis for six key wells (eg. XRD, TOC, VR, Rock Eval, Hg Capillary Pressures etc.)	�
Acquired and Integrated IFP Geochemical Data (750+ samples)	�
Burial History and Hydrocarbon Expulsion Modelling	�
Sedimentology and Chemostratigraphy Studies	�
Purchased 2,500km of 2D and 25km 2of 3D seismic data	�
Seismic reprocessing and interpretation of 998km of 2D seismic	�
28,000km2of gravity and magnetics data acquired and interpreted	�
Conventional prospect mapping - volumetrics and risking	�
Independent Unconventional In-Place Hydrocarbon Assessment	Complete
Independent Conventional In-Place Hydrocarbon Assessment	Complete

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France Fiscal Regime

• Oil and gas owned by the State - exploration occurs under a concession regime

• Production royalties and local mining taxes payable – no surface rentals or fees

• Attractive fiscal terms – some of the best in the world, superior to US onshore and have not altered since 1980

• Historically low sovereign risk with stable government (Moodys/Fitch/S&P – AAA/stable)

• Mining Code under review - being modernised to deal with recent increase in activity

Fiscal Terms	Commodity	Production Rates	Royalty Rate	Royalty Rate	Tax Rate
Onshore			Oil	Gas
US	Oil and Gas	All Production	~25%	~25%	30%
	Oil	0 – 1,000 bbls/d	-
		1,000 – 2,000 bbls/d	6%
France		2,000 – 6,000 bbls/d	9%		34.4%*
		>6,000 bbls/d	12%
	Gas	<30mmscf/d		Nil
		>30mmscf/d		5%

• Royalties and Local Mining taxes deductible in calculating corporate tax. Royalties calculated on a per field basis

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