Elixir Petroleum Limited has provided a summary review of its operations for the period ended June 30, 2008.
Gulf of Mexico
During the last financial year four wells were completed and brought onto production by the respective operators of the High Island and Pompano projects. At High Island (30% working interest) production commenced in September 2007 from the two wells drilled. At Pompano (25% working interest), the first two wells were spudded in January and February 2008 respectively, with production subsequently commencing from both these wells in March and April respectively.
Elixir's share of revenue from these projects for the year to June 30, 2008 was in excess of $9.1million and a third well at Pompano is expected to spud during the current quarter.
Elixir has continued to make progress with its North Sea portfolio. Elixir's objective is to acquire interests in licences which are considered to have high prospectivity, to work-up attractive prospects in a cost-effective manner and to farm these prospects out to drill. Prospects being matured at present by Elixir are of a potential size such that a successful discovery on any one of them would have a significant impact on the valuation of the Group.
As announced to the market in March 2008, Elixir has secured an interest of up to 35% in Block SL-4 offshore Sierra Leone. Elixir, as operator and on behalf of the joint venture, procured the services of a leading seismic acquisition contractor to undertake a 3D seismic survey designed to better define and mature the large number of significant leads and play types identified from 2D seismic data acquired over Block SL-4 in 2003. Data acquisition on Block SL-4 was completed in June 2008 and processing of the 3D data set is currently underway.
Commencement of Drilling Operations at Well-3 at Pompano
On September 22, 2008 the Company announced that a rig had arrived on site and was preparing to drill the third development well at Pompano. The well has subsequently been spudded.
Block SL-4 Offshore Sierra Leone
On September 26, 2008 the Company announced that it had issued a notice of default to Prontinal Limited, its joint venture partner in Block SL-4. The notice of default relates to the failure on the part of Prontinal to meet outstanding payments with respect to the 3D seismic acquisition project which was recently concluded over the license. As a result of Prontinal's default, a letter of demand has been received by a subsidiary of Elixir from the seismic contractor in relation to the unpaid amount of approximately US $9 million
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