Well #2 on Stream at Pompano

Elixir Petroleum Limited ("Elixir"), the international oil and gas exploration and production company, announced that Well SL 103230 #1 ("Well #2") at the Pompano Gas Field, offshore the Texas Gulf Coast was placed on production on 1 May 2008.

Production rates at Well #2 have stabilized over the past few days at a combined rate of approximately 8 million standard cubic feet of gas per day ("MMscf/d") from the B and E sands. The well is also producing approximately 30 barrels of condensate per day ("BCPD") from the E Sand.

Well #1 at the Pompano Project continues to produce on expectation at approximately 6.6 MMscf/d and approximately 5 BCPD. This provides a combined total production result from the Pompano Project of approximately 14.6 MMscf/d and 35 BCPD.

Commenting on the announcement, Elixir's Managing Director, Andrew Ross said, "We are delighted with the production result that has been achieved from Well #2 at Pompano. The result is particularly pleasing given the historically high gas prices being realized for gas production at Pompano. We look forward to reporting on further planned activities at the Pompano Project in the near term."

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