Elixir Petroleum updates Pompano project

Elixir Petroleum Limited provides an update on activities at the Pompano Project.

The operator of the Pompano Project, AnaTexas Offshore Inc. (“AnaTexas”) has advised that the Hercules 152 jack-up drilling rig commenced mobilisation to the Pompano field on 9 January 2007. Subject to weather, it is expected the drilling unit will arrive in field over the weekend, with preparation to spud Well SL 103229 #1 (“Well #1”) commencing immediately.

Well #1 is designed to test seven potentially gas bearing sands located between 3,800 feet and 7,900 feet measured depth. Several of these sands have been productive down dip of the Well #1 location, or nearby within the Pompano field.

The Pompano gas field lies offshore in the Gulf of Mexico, in Brazos Block 446-L SE/4, which is approximately 90 miles southwest of Houston Texas. The field is approximately 7 miles offshore in 55 feet of water.

The Pompano gas field was discovered in 1966 and has produced over 120 billion cubic feet of gas prior to being shut-in in 2003. The Pompano Project is essentially a re-development of the Pompano gas field with new well locations based on modern 3D seismic data.