Elixir Petroleum Cancels Hunter Petroleum's Discovery Options

Elixir Petroleum has cancelled 10,000,000 Discovery Options issued to Hunter Petroleum Limited on December 16, 2004. These unlisted options formed part of the consideration for the purchase of UKCS Block 211/22b by Elixir from Hunter.

Under the terms of issue the Discovery Options were exercisable only after the achievement of a Commercial Discovery on the first exploratory well to be drilled on the Jaguar prospect (formerly known as the Swaledale prospect). The Company confirmed on March 7, 2006 that well 211/22b-5 had encountered no commercial hydrocarbons. The options are therefore not exercisable under the issue terms and have been cancelled.