Elixir Begins 2nd Well at Pompano Project

Elixir Petroleum Limited reported that the Hercules 152 jack-up drilling rig, which successfully drilled Well SL 103229 #1 ("Well #1"), has been moved to the 'A' Production Platform and has spudded Well SL 103230 #1 ("Well #2") at the Pompano Gas Project offshore Texas.

Well #2 is being directionally drilled to approximately 9,360 feet measured depth ("MD") and is targeting several sands containing a combination of proved, probable and possible reserves.

On a trouble free basis, the well is expected to take about 28 days to reach total depth. The drilling rig is currently positioned on the north side of the existing 'A' Production Platform (see schematic below) and has driven the first casing string, a 30-inch Caisson, to a depth of 354 feet. At the time of the Operator's report on 25 February 2008 (US/CST) the 20-inch hole section had reached 800 feet MD and the drilling rig was preparing to run the 16-inch casing. The casing will be cemented in place and thereafter a 13 1/2-inch hole will be vertically drilled to a planned depth of 3,550 feet MD.

Commenting on the announcement, Elixir's managing director, Andrew Ross, said: "We are pleased with the progress being made at the Pompano project. The results achieved from Well #1 have been encouraging, with flow rates during the testing programme exceeding our expectations. We are looking forward to further success with the second well in the programme and to first gas at Pompano, which will add to the company's existing revenue stream from its High Island 268-A production."

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