Elixir Exceeds Expectations with Pompano Production
Production rates at Pompano continue to exceed pre-drill expectations, with the first two wells producing a total of approximately 16MMscf of gas per day (MMscf/d) and 60 barrels of condensate per day (BOCD). This provides Elixir with a net production entitlement of approximately 2.9MMscf/d and 11BOCD from the Pompano Project. This is according to a report prepared for the Pompano Project in accordance with SPE/WPC standards for Elixir by Ralph E. Davis Associates Inc.
First proceeds from gas sales at Pompano were received by Elixir on May 14, 2008, representing another significant milestone for the company. The receipts relate to the first 20 days of production in March 2008 from Well #1. The average gas price achieved in the month was US$8.63 per Mscf, however higher average prices are expected for the months of April and May. Proceeds from the sale of condensate production in April will be remitted to Elixir during June.
The joint venture is currently planning the next well in the sequence to be drilled at Pompano, which is expected to spud during Q3, 2008.
Pompano is a gas field development and exploration project located in 60 feet of water in the Gulf of Mexico Brazos Block 446-L SE/4, 7 miles off the coast of Texas. Elixir Petroleum holds a 25% working interest.
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