Elixir's High Island, Pompano Projects OK after Gustav

Pompano Project
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High Island Project
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Elixir Petroleum's operations at the High Island and Pompano projects located in the Gulf of Mexico were not adversely affected by the passage of Hurricane Gustav through the Gulf of Mexico last week. As a precautionary measure, the High Island field was shut-in for a period of about four days and personnel withdrawn from the connected offshore installations. However, operations at High Island have now resumed with both wells back on production at a combined rate of approximately 4MMscf of gas per day and 200 barrels of condensate per day.

Production was not shut-in at the Pompano field as it was outside the area affected by Hurricane Gustav.

The Operator at the Pompano Project has also reported that the Hercules 152 jackup drilling rig, which is contracted to drill the third development well at Pompano, was similarly not damaged by Hurricane Gustav although it was down-manned.

Hurricane Ike has recently entered the Gulf region and is presently being closely watched. Elixir has been advised that the Hercules 152 rig will again be down-manned as a precaution and this will delay the mobilization of the rig to the Pompano location. The Company will keep the market advised of developments in relation to the passage of Hurricane Ike and the likely spud date for the third development well at the Pompano Project.


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