Elixir: Rig on the Way to Pompano, Drilling to Start Soon

Elixir Petroleum advises that the operator of the Pompano Project, AnaTexas Offshore Inc., has advised that the Hercules 152 jackup drilling rig commenced mobilization to the Pompano field on Jan.9, 2007. Subject to weather, it is expected the drilling unit will arrive in field over the weekend, with preparation to spud Well SL 103229 #1 commencing immediately.

Well #1 is designed to test seven potentially gas bearing sands located between 3,800 feet and 7,900 feet measured depth. Several of these sands have been productive down dip of the Well #1 location, or nearby within the Pompano field.

The Participants in Well #1 and their respective working interests are Elixir Petroleum with 25%, Buccaneer Energy with 65%, Baron Petroleum with 7.5% and Streamline Exploration with 2.5%