Elixir Snaps Up Interests in 2 UK Continental Shelf Blocks

Elixir has been awarded interests in Blocks 211/27d and 211/12b in the UK Continental Shelf 25th Seaward Licensing Round ("the Round"), further consolidating the Company's position in the northern sector of the UK North Sea.

Block 211/27d - Extension of Mulle Project

Block 211/27d is located immediately adjacent to Block 211/22b, which contains the Mulle appraisal project. Block 211/27d hosts a mapped southern extension of the Mulle accumulation. Mulle was discovered through the drilling of an exploration well in the 1970's which encountered a 17m gross oil column in the middle Jurassic Brent sequences, but was not flow tested at the time. In May 2008, the block operator published a most likely in-place resource estimate of 17 million barrels of oil, providing Elixir with a net interest of almost 7 million barrels of oil. With the award of Block 211/27d, this resource estimate is likely to increase.

Elixir holds a 40% working interest in Block 211/22b and the newly awarded Block 211/27d.

Block 211/12b - Tiger Prospect

Block 211/12b is located in the Northern North Sea, approximately 140km north east of the Shetland Islands, in a water depth of approximately 125m. Block 211/12b contains a newly mapped prospect named Tiger. The block lies 5km to the east of the Magnus Field which was brought on-stream in 1983 with an in-place volume of approximately 1.5 billion barrels of oil.

The target reservoir in the Tiger prospect is the Magnus Sandstone Member, over 500 ft of which was encountered in the down dip 211/12b-15 well. The equivalent sands in the nearby Magnus Field have excellent porosity and permeability characteristics. Evidence from the 211/12b-15 well also indicates the presence of a nearby hydrocarbon column. Reservoir presence and quality are considered to be low risk as is hydrocarbon charge.

Elixir holds a 100% working interest in the Block and is operator. The Block has been awarded for a license term of 4 years with a drill or drop decision required at the end of year 3.

The execution of the license agreements with the UK Government for Blocks 211/12b and 211/27d will occur in the coming weeks.

Elixir's Managing Director, Andrew Ross, said "We are delighted to have been awarded interests in two blocks in the recent 25th Round. This is the fourth time Elixir has participated in the Seaward Licensing Rounds in the UK with success. The securing of Block 211/27d adds to our Mulle acreage position and should see an uplift in the mapped resource estimate for the field."

He also added, "Block 211/12b, which contains the Tiger prospect, is an exciting and significant addition to our portfolio of interests in the Northern North Sea and we are looking forward to working up the prospect to drill ready status over the coming months."