Elixir Petroleum, the international oil and gas exploration and production company provides an update on operations across its project interests.
Highlights
• Independent reserves report for Pompano Project attributes 2P reserves of 17.1 Bcf and almost 50,000 barrels of condensate for first two wells
• First sales proceeds from production at Pompano received by Elixir, representing another milestone for the Company
• 3D seismic acquisition on Block SL-4 offshore Sierra Leone, West Africa approximately 60% complete and on schedule for completion in June
Gulf of Mexico - Pompano Project
Production rates at Pompano continue to exceed pre-drill expectations, with the first two wells producing a total of approximately 16MMscf of gas per day (“MMscf/d”) and 60 barrels of condensate per day (“BOCD”). This provides Elixir with a net production entitlement of approximately 2.9MMscf/d and 11BOCD from the Pompano Project.
First proceeds from gas sales at Pompano were received by Elixir on 14 May 2008, representing another significant milestone for the Company. The receipts relate to the first 20 days of production in March 2008 from Well #1. The average gas price achieved in the month was US$8.63 per Mscf, however higher average prices are expected for the months of April and May. Proceeds from the sale of condensate production in April will be remitted to Elixir during June.
The joint venture is currently planning the next well in the sequence to be drilled at Pompano, which is expected to spud during Q3, 2008.
Gulf of Mexico - High Island Field
Elixir has been advised by the operator that a wireline unit will be mobilised to the HI-268A unmanned production platform in the next few days in order to open the upper sliding sleeves in the completion over the C Sand reservoir in Well 1-A. It is expected that this operation will be completed towards the end of next week and should result in an increase in production rates from Well A-1. A further announcement on flow rates will be made in due course.
UK North Sea
Over the course of the last 12 months, Elixir has undertaken comprehensive technical studies which have identified a number of highly prospective exploration targets in unlicensed blocks located in the UK North Sea. Elixir will be participating in the 25th Seaward Licensing Round in the UK, with applications for several blocks relating to these exploration targets to be submitted next week. Awards of licences in relation to successful bids in the 25th Licensing Round will be notified by the UK Government in August 2008.
West Africa – Sierra Leone
The acquisition of the 1,222 km2 3D seismic survey over Block SL-4 continues without incident. Approximately 60% of the seismic data has been acquired with the survey due to be completed on schedule in June 2008.
Commenting on the announcement, Elixir’s Managing Director, Andrew Ross said:
“We are extremely pleased with the result of the reserves certification for the first two wells at Pompano, which was ahead of expectation and gives added confidence for future wells. We are looking forward to steadily increasing cash flow from our operations in the Gulf of Mexico through the second half of 2008 and to further activity across our entire portfolio of interests”.