Elixir Reports on Latest Development Well at Pompano Field

Elixir Petroleum Limited has provided the following update on progress at Well SL10320-4 ("Well #3"), the latest development well to be drilled at the Pompano field.

Since the Company's last announcement, the Operator at the Pompano Project, Anatexas Offshore Inc., has advised that Well #3 spudded on September 22, 2008. The Operator has also confirmed that the 36" caisson has been successfully driven to depth and that the 20" and 13 1/2" hole sections have been drilled to planned depth, cased and cemented to surface.

At the time of the Operator's report on September 30, 2008, the rig was making preparations to commence drilling the 9 7/8" hole section from a depth of 3,005 ft. The 9 7/8" hole section will be directionally drilled to an approximate depth of 8,000 ft and is designed to penetrate a number of the target horizons for this well.

The participants in Well #3 and their respective working interests are:

• Elixir Petroleum Ltd.  25.0%
• Buccaneer Energy Ltd.  65.0%
• Baron Petroleum Inc. 7.5%
• Streamline Exploration Inc. 2.5%