Elixir Acquires Seismic Data Offshore Sierra Leone

An interest in Block SL-4 was assigned to Elixir on 20 February 2008. At that time, Elixir was also approved as operator of the licence. Block SL-4 comprises an area of 4,429 km2 lying in water depths from 100m to over 3,500m offshore Sierra Leone, West Africa.

As the operator of Block SL-4, Elixir contracted a leading seismic acquisition contractor in March to undertake a 1,222 km2 3D seismic survey of the Block on behalf of the joint venture. The 3D survey is designed to better define and mature the large number of significant leads and play types identified from 2D seismic data acquired over Block SL-4 in 2003.

The vessel conducting the survey commenced acquiring data on Block SL-4 on 30 March 2008 and at 28 April 2008 had acquired 437 km2, representing 36% of the total shoot area. It remains our expectation that on a trouble free basis, seismic acquisition activities will be completed and the vessel released by early June 2008. The data acquired will be processed in Europe by the seismic contractor, ahead of detailed interpretation studies by Elixir's exploration team based in England.

The undertaking of the 3D seismic survey satisfies the agreed minimum work programme for the First Exploration Period under the Petroleum Agreement governing Block SL-4. Elixir will be required to contribute approximately US$1.5m to the cost of the 3D survey in September 2008 and at that time can elect to issue fully paid ordinary shares in Elixir to the value of approximately US$2.0m in order to exercise the option over an additional 20% interest in the project that it holds.