Elixir Petroleum Finalizes Jaguar Farmout Agreement

Elixir Petroleum reports that the farmout agreement covering the Company's Block 211/22b to DNO has been finalized and signed.

This Northern North Sea block hosts the large Upper and Middle Jurassic Jaguar prospect, which if hydrocarbon-bearing, has the potential to contain reserves of several hundred millions barrels of oil.

As announced earlier, DNO will secure a 60% interest in Block 211/22b by funding 92.5% of the costs of drilling an exploration well on Jaguar. Elixir will retain a final 40% interest in the block.

A well is expected to be drilled potentially during the first half of 2006.

Elixir is very pleased with the opportunity to partner a company of the caliber of DNO in such an exciting prospect as Jaguar.

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