Elixir Energy Ltd

Elixir raised $5M via a placement of 125M shares at $0.04, a 20% discount to the $0.05 close. Funds go to the Lorelle-3H soak and retest, Diona-1 artificial lift (subject to JV approval) and a newly launched strategic review of options including farm-outs.

capital raising announcement

Lorelle-3H's first test phase hit a peak 10.4 mmscfd gas plus 10 bbl/d condensate from ~1,000 m of reservoir, while still producing 800 bbl/d of fluid. Gas needs no processing; the most stable 12-hour period averaged 2.35 mmscfd. A 60-day soak precedes a second test phase. Resolves the earlier 'no gas rate' question.

flow test result

Elixir declares Diona-1 a discovery, saying it proved recoverable, overpressured, low-impurity gas and condensate. This adds a net 184 km² (45k acres), taking Taroom Trough acreage to 548k net acres. The well has recovered only 45% of injected fluid and may need artificial lift; a Contingent Resource booking will be pursued.

drilling result

Sproule ERCE certified 662 BCFe of new net 2C contingent resource in ATP 2057 (50% Elixir), lifting total 2C resources 24% to 3,455 BCFe (~3.5 TCFe). This follows the Teelba seismic. Santos, as operator, is to lodge a retention (PCA) application next.

resource reserve update

Elixir signed an Early Works Agreement with APA Group to study a pipeline route from a notional 40 TJ/d Lorelle pilot project to the Wallumbilla Gas Hub, with results in about 12 weeks. It feeds a possible reserves booking after the June flow test. Adoption needs Santos JV agreement.

material agreement

Lorelle-3H reached 4,477 m with a 1,157 m lateral, the longest in the Taroom Trough, and measured 1,033 m of net gas-condensate pay at 11.2% average porosity. Management says this far exceeds the pilot hole. The well is suspended for a 30-day production test in Q2 2026.

drilling result

Elixir signed a debt facility of up to $10M with Endpoints Capital, secured against the Lorelle-3 FY26 R&D refund. Interest is 15.75% capitalised, with a 1% drawdown fee, repayable by 28 February 2027. This delivers the planned lending facility, ending Elixir's no-debt position.

debt financing

Wireline logs confirm 148 m of net gas and condensate pay at Lorelle-3, including 28 m in the Dunk and 60 m of dry gas in the Lorelle sandstone, which management says beat expectations. The Dunk horizontal sidetrack starts next, aimed at a first reserve.

drilling result

Drilling has started at Lorelle-3 after the rig was accepted on contract. The pilot hole targets 3,600 m, followed by a horizontal sidetrack of at least 1,000 m, together expected to take about 45 days. This is the well flagged as a key near-term catalyst.

drilling spud

ATP2044 was renewed and a Potential Commercial Area (PCA356) granted over 100% of the permit, securing retention for 15 years. PCA356 covers 1,058 km² and holds the 1,362 BCFe 2C resource from Daydream-2. This resolves the pending PCA thread and delivers Phase 1 of the plan.

regulatory community update

Omega Oil and Gas will take 19.43% of Elixir at 4.1c per share, investing up to $14.6M. Nero adds $2M, for about $16.6M total. Funds a Lorelle-3 horizontal sidetrack and Diona-1 testing; pro-forma cash is about $25M. Tranche 2 needs shareholder approval.

capital raising announcement

Lorelle-3 won its R&D Advance Finding, as expected before spud. Up to 48.5% of eligible drilling, testing and completion costs can be refunded over up to three financial years. Elixir plans new lending facilities to bring those refunds forward.

regulatory community update

Sproule ERCE certified 189 BCFe of new 2C contingent gas resource (100% Elixir) in ATP 2077 Block-B. Elixir's Taroom Trough 2C total rises 8% to about 2.8 TCFe, excluding ATP 2057. Next steps are a retention application and an Inglestone-2 well.

resource reserve update

Justin Ferravant, formerly CFO of Strike Energy, replaces the retiring Vicky Allinson as CFO and Company Secretary. He receives 15M performance rights (vesting at 6c-18c VWAP) and 2M options at 12c expiring 31 December 2026.

director officer appointment

Xstate has completed its Diona carry and the joint venture is formed, with Elixir (49%) resuming operatorship. Stimulation and flow testing is targeted this quarter. Lorelle-3 is confirmed for January 2026 using Shell-approved H&P FlexRig, to 3,600 m.

farm in farm out completion

Diona-1 logged 23 m of net gas pay (average porosity 10%) across the Permian formations, and will be completed for flow testing. Elixir's CEO calls it an indicated discovery, still to be confirmed by production testing. Lower Wallabella upside is unconfirmed.

drilling result

Diona-1 reached 2,479 m. The main Showgrounds target was well developed but held no hydrocarbons, though the Permian section showed a 181 m gas-prone sequence, with a kick. Wireline logging is still to come before final results.

drilling result

Diona-1 has spud and is casing the top hole at 549 m. Elixir (49%) is fully carried by Xstate (51%). Success would help move its 100%-owned Taroom sub-blocks A and B into retention, a Phase 1 goal.

drilling spud

New CEO releases a three-phase 'fast follower' strategy for the Taroom Trough: secure tenure, prove reserves, then early production. It targets production and over 150 Bcf of 2P reserves by end-2027, progressing only when capital is available at acceptable cost.

investor presentation

The board will write off the Mongolian assets (A$34M carrying value at 31 December 2024) at 30 June 2025, citing its Taroom Trough focus and the farmout. At the farminee's request, Elixir granted a one-year option to buy its residual gas interests for US$10M.

asset acquisition disposition

The share purchase plan closed with only $117,000 of applications against up to $2M sought, taking the placement plus plan total to $7.1M. Cash plus receivables, including a $3.7M R&D refund, total $10.6M at end of April.

capital raising announcement

Neil Young retires as CEO and Managing Director after about six and a half years; Stuart Nicholls, former Strike Energy CEO, replaces him immediately. Young stays as adviser for at least 3 months. Nicholls says he will prioritise long-term tenure of the Taroom Trough permits.

director officer appointment

Xstate Resources earns 51% of the Diona sub-block of ATP 2077 by fully funding the Diona-1 conventional gas well, expected in the third quarter of 2025. Elixir keeps 49% of Diona and 100% of sub-blocks A and B. This resolves the Diona farmout talks.

farm in farm out agreement

Elixir farmed out its Mongolian gas (Nomgon) and solar/wind assets to Gobi Terra (UK), which earns 51% and fully carries Elixir to final investment decisions. Put/call exit options are capped at US$30M for gas; management cites possible payments of A$56M in total. This resolves the Mongolian farm-out talks.

farm in farm out agreement

ASX suspended Elixir shares at the company's request, pending an announcement about expanding its Taroom Trough position. Follows the 7 February trading halt.

other

Elixir signed farmin deals with Santos to earn 50% of ATP 2056 and ATP 2057 in the Taroom Trough, booking 1.2 TCFE of contingent gas (total Grandis 2C now 3.0 TCFE). It raises up to $9M: $7M placement at 3.5c plus up to $2M shareholder offer, to fund the Lorelle-3 well.

farm in farm out agreement

ERCE certified a maiden deep dry coal contingent resource of 245 Bcf (2C) in ATP 2044 and 2077 Sub-block A, lifting total Grandis 2C to 1,715 Bcf (+17%). This follows the Daydream-2 coal flows and converts part of the earlier prospective coal estimate.

resource reserve update

Elixir booked 712 Bcf (2U, unrisked) of prospective gas in ATP 2077 Sub-Block B, 100% owned. Farmout talks are under way for Sub-Block C (Diona) to fund an exploration well, and updated ATP 2044 contingent resources are expected before year end.

resource reserve update

Non-binding MOU with Australian Gas Infrastructure Group to investigate a pipeline to Wallumbilla, processing, compression and storage for possible Grandis gas. Only a framework, with no commitment or funding; an early step toward getting gas to market.

material agreement

Daydream-2 testing concluded: five of six zones flowed, including two deep coals. Peak rate was 2.6 MMscfd but stabilised rate fell to 1.0 MMscfd, versus 2.1-2.5 in August, which Elixir attributes to condensate or water banking (its explanation). Well retained; ATP 2044 retention lease sought; Daydream-3 planning continues.

drilling result

Gas flowed to surface from the top coal zone (3,678-3,786 m) in Daydream-2, the first flow from Taroom Trough deep coals. This lets Elixir start converting its 3,603 Bcf prospective coal resource to contingent. The all-zone flow test will likely take some weeks.

flow test result

ATP 2077 was formally awarded, 100% to Elixir, 6-year term, no domestic gas reservation, resolving the June preferred-tenderer status. ERCE certified 2C contingent gas of 173 Bcf in sub-block A, lifting Grandis 2C to 1,470 Bcf (+13%).

resource reserve update

After stimulation, the Lorelle Sandstone flowed at a maximum of 3.5 MMscfd, with stabilised rates of 2.1–2.5 MMscfd, versus 1.3 unstimulated in April. That is near the 2.5 MMscfd economic hurdle. Five upper zones are now being stimulated.

flow test result

Elixir raised $6.25M via a placement of 62.5M shares at 10c, a 13% discount to last close, with one EXROB option (12c, expiring Oct 2026) per four shares. Funds cover Daydream-2 contingencies, long-lead items for the next well and farm-out negotiating strength.

capital raising announcement

Elixir was named Queensland Government preferred tenderer for licence PLR2023-1-7 (526 km2), next to Grandis. The 152 km2 Taroom Trough part adds 14% to its acreage there. 100% interest and no domestic gas reservation; the final permit still needs environmental and native title steps.

asset acquisition disposition

ERCE certified Grandis 2C contingent resources at 1,297 Bcf, up 328% from 395 Bcf in 2022 (1C 405, 3C 4,290 Bcf). Sandstones only; coals excluded. The key contingency remains flow rate, with the upper zones untested.

resource reserve update

The Lorelle Sandstone was stimulated and cleaned up; modelling suggests it alone could flow commercially, with breakeven estimated at 2.5 MMscf/d. A stuck bridge-plug setting tool and equipment commitments forced demobilisation; the other five stages resume in about a month.

drilling progress report

Daydream-2's Lorelle Sandstone (4,200-4,217 m) flowed gas without stimulation, at a stabilised 1.3 MMscf/d (peak 2.3). This confirms the late-2023 gas kick was no one-off. Stimulation follows within weeks; Daydream-3 is in preliminary planning.

flow test result

Prospective resources in the Grandis coals rose to 3.6 Tcf (2U) after adding adsorbed gas, up 2,316 Bcf on the earlier 1,287 Bcf. Coals averaged 23 m3/t, with CO2 about 1%. Stimulation starts mid-April, aiming to convert these to contingent resources.

resource reserve update

Daydream-2 logs show an interpreted 154 m of net gas pay in sandstones (Kianga 78 m, Back Creek 76 m), plus 65 m of gassy coals to be stimulated. Over-pressure is estimated at about 0.69 psi/ft. Well costs are coming in under budget.

drilling result

Elixir raised $6.5M via a placement of about 76M shares at 8.5c, a 15% discount to last close, with one listed option (12c, expiring Oct 2026) per three shares. Funds mainly expand Daydream-2 stimulation and testing. No SPP offered, as one ran under 3 months ago.

capital raising announcement

Daydream-2 reached total depth of 4,300 m, about 100 m deeper than planned, and an unexpected permeable gas zone flowed gas to surface without stimulation (about 50,000 cubic feet flared). Gross gas-bearing interval is 607 m; drilled ahead of schedule and under budget. Origin has paid in full.

drilling result

Daydream-2 reached the primary Kianga Formation at 3,694 m, ahead of schedule, with gas shows peaking at 777 units, 38 times background. Total depth of about 4,200 m and logging expected within a week. Shows only, not a test result.

drilling progress report

Daydream-2 appraisal well has spudded, about five kilometres from the 2011 Daydream-1 gas discovery. It is expected to reach 4,200 m in about a month, then be logged, with major stimulation and flow testing early in the New Year.

drilling spud

Information Sharing Agreement with Origin Energy: Origin pays all incremental costs plus $1M for data from Daydream-2 for its overlapping carbon storage licence. Origin has options on similar deals for up to five future wells. Further non-dilutive funding.

material agreement

The Share Purchase Plan raised $1.725M at 7c, below the $3.5M target, bringing the total with the placement to $8.7M. Issue is conditional on AGM approval on 16 October. Funds go to Daydream-2, Nomgon and working capital.

capital raising announcement

Elixir agreed a term sheet with Radium Capital for a debt facility of up to 80% of the FY24 R&D rebate, at 16% interest, secured on the rebate. A$0.4M FY23 rebate (48.5% of qualifying spend) is due soon. Non-binding framework.

debt financing

Nomgon-10 pilot well was drilled and brought online in 19 days, with water flowing first and gas to follow. A second CBM discovery was declared at Yangir after Yangir West-2 tested 2 mD. Elixir says its main 2023 drilling goals are met.

drilling result

Elixir declares a formal CBM gas discovery at Big Slope under PRMS rules, after Big Slope Shallow-1 measured 0.8 mD permeability and gas content up to 9 m3/t. Nomgon-10 pilot well spudded and four rigs now run. No resource volume is stated.

drilling result

Elixir raised about $7.0M through a placement of ~100M shares at 7c, a 14.6% discount to last close, with one 12c option per two shares. A Share Purchase Plan of up to $3.5M follows at the same price. Funds Daydream-2 and Nomgon; the R&D rebate is now stated as 48.5%, up from 43.5%.

capital raising announcement

Daydream-2 appraisal well at Grandis is set to spud in late October 2023, with an SLB rig contracted and civil works approved. Target depth is about 4,200 m. It aims to expand the 395 Bcf 2C resource; the government R&D incentive covers 43.5% of cost.

drilling scheduled

Bluebill-1S, the first well of the 2023 Nomgon exploration campaign, spudded 18 km east of the pilot plant. Pilot water is steady at 130 bwpd, gas rates variable. The 9-well program is on track, with appraisal drilling at Big Slope and Yangir due shortly.

drilling spud

Elixir received an Advanced Finding that Daydream-2 qualifies for the R&D tax incentive, a refundable offset of 43.5% of eligible spend. This addresses the non-equity funding sought for Grandis; the company is evaluating non-recourse finance against it.

material agreement

Board expands the Nomgon pilot with a longer flow period and a third well, Nomgon-10. Nomgon-9 is back producing after workover at up to 76,000 scfd, below the earlier 200,000 scfd peak; Nomgon-8 is shut in as a monitor. Exploration drilling starts shortly.

production update

Elixir signed a Term Sheet with SB Energy, upgrading the June 2022 non-binding MOU. It gives an exclusive framework toward a binding 50/50 Gobi H2 joint venture, aiming for a pilot FEED entry decision by mid-2023.

material agreement

Nomgon pilot reached 100,000 scfd of gas with low water of 180 barrels per day, after 83 days. Nomgon-8 lags after a workover. Regulator approved a 2023 program of at least 9 wells, starting Q2. Advances the pilot toward a commercial-rate test.

production update

The 2022 drilling program is complete, with 19 wells drilled (11,576 m). The Nomgon pilot is flowing with promising early rates, 99% methane gas and fresher water; stable flow rates are expected early 2023. Big Slope-6 hit 17 m of coal at over 8 m3/t, drilled in under 10 days.

drilling result

Pumping began at the Nomgon pilot and gas broke through within days, now being flared, which the company calls a first for Mongolia. One of the two wells is slugging and may need a workover. Big Slope-3 recorded 9.2 m3/t gas content, the highest in the PSC. Resolves the question of whether the pilot would flow gas.

production update

ERCE certified an initial 2C contingent resource of 395 Bcf recoverable gas (1C 93, 3C 1,493 Bcf) plus 3.6 MMbbl condensate at ATP 2044, now named the Grandis Gas Project. Moves the permit bought in August from prospective to contingent resource. Daydream-2 well planned for Q4 2023.

resource reserve update

First Nomgon pilot well (Nomgon-8) spudded on 10 September, with the two-well program expected to take under 30 days; gas timing is uncertain. Big Slope-1 cored ~10 m of coal with visible gas, a possible new discovery. Orio-1 and Yangir-5 missed target depth. Major Drilling awarded a fourth rig.

drilling spud

Elixir bought 100% of Queensland gas permit ATP 2044 (Taroom Trough, ~35 km from Wallumbilla) for A$500,000, 20.7M shares (~A$3M) and a 3% royalty on liquids. Mean unrisked prospective resource is 3,265 Bcf; a well is aimed for 2023. Marks a new Australian asset beyond Mongolia.

asset acquisition disposition

Bulag Suuj-1S found 21 m of coal, opening a further potential sub-basin; an appraisal well follows. Yangir-4 hit fractured-coal drilling problems and is being re-drilled. 322 km seismic is complete. First pilot well now due to spud around end of August.

drilling result

Elixir signed a non-binding MOU with SoftBank-owned SB Energy (named SoftBank Energy in this release) for the Gobi H2 hydrogen project: a two-year framework, terminable on 30 days notice, each party at its own cost. It aims at a small pilot first. No funding committed.

material agreement

Tim-1S, south of Tavan Tolgoi, discovered a new coal-bearing sub-basin: 804 m deep, 16 m coal plus 30 m silty coal (46 m total). Tim-2 appraisal is now drilling about 200 m downdip. Two more drilling contractors signed; Major Drilling to drill the pilot wells.

drilling result

Plans for the 2022 long-term pilot production project were lodged with the regulator: two production wells, drilling in 1H and testing in 2H 2022. Nomgon-6 gas is about 90% methane. 17 wells drilled in 2021, 76% hit coal at that date; 528 km seismic done; Richcairn West-4S found no coal.

regulatory community update

Elixir's subsidiary GOH Clean Energy acquired Solar Ilch LLC, owner of an undeveloped 50 MW solar project in the South Gobi, for 720,000 Elixir shares. It extends the hydrogen strategy. Neil Young also became Deputy Chairman of a Mongolian hydrogen council; engineering and commercial studies launched.

asset acquisition disposition

Nomgon-6 flowed gas and water to surface from four zones, with 280 barrels of water a day combined; methane was detected by uncalibrated, qualitative gas-meter readings. Elixir's first gas flow in a Mongolian CBM well, feeding the 2022 pilot. Richcairn-2S (8 m coal) and 3S (13 m coal) hit coal; third rig spudded Richcairn West-1S.

well test result

Richcairn-1S found 16 m of coal in a new sub-basin over 100 km long, the first well to hit coal purely on seismic. Nomgon Central-1 logged 65 m of coal but gas content looked lower than earlier Nomgon wells. A third rig is being added.

drilling result

Kingston-1S and 2S found 12 m and 8 m of coal, establishing a new coal-bearing sub-basin; Kingston-2S, at 801 m, is Elixir's deepest well yet. Kingston-3S has spudded, and Nomgon Central-1 will spud within a week to help design production tests.

drilling result

The Share Purchase Plan closed having raised $16.6m from over 1,400 shareholders, below the $20m target. With the $10m placement, the 36c raising totals about $26.6m, completing the funding for the expanded program.

capital raising announcement

Temee-1S, 40 km east of the Nomgon discovery, hit basement and found no coal, marking the eastern limit of coal in that depocentre. This is the first miss, leaving 11 of 12 wells with coal (92%). The first seismic line shows coal-like reflectors in a new sub-basin.

drilling result

Elixir raised $10m through a placement of 27.8m shares at 36c, a 20% discount to the last close. It also launched a Share Purchase Plan targeting $20m at the same price. The money funds an expanded Mongolian program meant to bring development forward 18-24 months.

capital raising announcement

Yangir-2 reached 578 m. Its gas is 99% methane, sales-gas quality, with raw gas content of 4.2-7.0 m3/t. Only 17 m of coal was logged in the first 300 m, and injectivity tests were uninterpretable because of heavy fracturing. A second rig is added and a 220 km seismic program has started.

drilling result

Elixir books its first contingent resource, covering the western Nomgon sub-basin: 2C recoverable gas of 24 Bcf (1C 5, 3C 104), unrisked. It also signed a Ministry of Energy MOU and engaged Clarke Energy for a feasibility study on a roughly 10 MW gas-fired power project.

resource reserve update

The final 5,949,622 listed options were exercised at 6.79c, raising $403,979; 392,424 expired unexercised on 31 December. Shares on issue are about 810.0m. The option exercise campaign closes having raised about $8.02m in total.

capital raising announcement

Independent auditor ERCE lifts Nomgon IX prospective resources for the first time since exploration began. Unrisked best case rises to 48 Tcf, and the risked best case rises 92% to 14.6 Tcf from 7.6 Tcf in 2018. Chance of success is now 30%. A maiden contingent resource is still to come.

resource reserve update

Nomgon-2 adsorption results show fully gas-saturated lower coals, matching Nomgon-1 (the lab's remaining results still to come). Yangir 1S was abandoned at ~347 m after mechanical problems under COVID restrictions, and 2020 operations are wrapped up. A 2021 program restarts around February with a core-hole at Yangir.

drilling result

Yangir 1S, in a new sub-basin 24 km WNW of Nomgon-1, hit 27 m of coal with unusually active gas bubbling at shallow depth. Hutul 1S found 6 m of coal 19 km east, with extension or new basin undetermined. Final 2020 well may slip due to COVID.

drilling result

Nomgon-2 final gas content averages 8.6 m3/t on a dry ash free basis, close to Nomgon-1's 8.9. Nomgon 5S had mechanical problems and will be re-drilled nearby at nominal cost. A second rig spuds the Hutul 1S exploration strat-hole, 20 km east of Nomgon-1, on 24 October.

drilling progress report

Anna Sloboda joins the board as a non-executive director from 1 October. She has 20+ years in corporate finance and junior resources, and experience with Chinese off-takers. Chair Cottee says it suits a company moving from explorer to developer and marketer.

director officer appointment

Nomgon-2's main seam averages 5.3 m3/t raw gas, matching Nomgon-1, and permeability tests were significantly better, up to 640 mD.m. Strat-hole Nomgon-S3 found about 78 m of coal on the northern limb. Seismic finished, and pilot production planning for 2021 began.

drilling result

Nomgon-2 reached 550 m total depth, logging 91 m of net coal, 51 m in the main seam, more than Nomgon-1's 71 m. Early gas readings match Nomgon-1. Step-out strat-holes follow, starting with the northern limb. Gas and permeability figures are still to come.

drilling result

The Nomgon-2 appraisal core-hole spudded on 9 July, with total depth expected around end-July or early August. Seismic acquisition of 106 km began 30 June in the north-west of the licence. New coal outcrops have also been identified across the licence.

drilling spud

Adsorption testing on one sample suggests the main Nomgon-1 seam is near fully gas saturated. Elixir says this could mean simpler, cheaper pilot production and less water to remove. A pilot test is aimed for 2021 if appraisal succeeds. Nomgon-2 spud is imminent.

well test result

Final lab work on Nomgon-1 gives an average dry-ash-free gas content of 8.9 m3/t in the main seam, up from the earlier raw figure of over 5 m3/t. The 2020 program is now 106 km of 2D seismic, one core-hole and up to six strat-holes, with a contractor mobilising in July.

well test result

Elixir signed a non-binding MOU with MT Group, a Mongolian fuel retailer, to develop a small-scale LNG plant fuelling South Gobi coal trucks. It is the company's first offtake project. The MOU is non-binding and the company says initial modelling indicates high profitability.

material agreement

The Share Purchase Plan drew over $2.9m of applications against a $0.25m target, and was capped at about $1.65m. With the placement, total raised rises to $3.35m, assuming director participation is approved, funding more seismic and strat-holes.

capital raising announcement

Elixir raised $1.75m through a placement of 87.5m shares at 2c, a 20% discount to the 5-day VWAP, with a further $0.25m targeted via a Share Purchase Plan. Funds pay for delineation and exploration drilling from early July, feeding a maiden contingent resource report later in the year.

capital raising announcement

Nomgon-1 is declared a coal seam gas discovery, the first in Mongolia, with average raw gas content above 5 m3/t in a 49 m gross seam. Permeability tests met discovery requirements. The well is plugged and abandoned; delineation planning and partner talks follow.

drilling result

Nomgon-1 reached 491 m total depth with 82 m net coal by geologists' estimate, including a 51 m seam, and visibly better coal quality than Ugtaal-1. Gas bubbled from cores. Gas content and permeability test results are still to come.

drilling result

Permeability and preliminary gas content at Ugtaal-1 came in at the lower end of expectations, which the company attributes to poorer coal quality. This contrasts with earlier upbeat coal reports. Second core-hole Nomgon-1 spuds today, about 37 km away in a different sub-basin.

well test result

Ugtaal-1 core-hole reached total depth of 752 m with an estimated 43 m of net coal and 99% core recovery, gas mainly methane. Gas content and permeability results are still to come. BO-CH-2 has reached the Permian and first coals.

drilling result

Ugtaal-1 core-hole spudded on the night of 11 November, after repeated delays, and was at 122 m with thin coal stringers. BO-CH-2 reached 408 m. Both rigs are winterised and the gas-testing lab is set up.

drilling progress report

2019 drilling starts with the BO-CH-1 chip-hole, a cheap stratigraphic well. The program expands to 2-4 chip-holes plus two firm core-holes, with two rigs and an option for a third core-hole. Ugtaal-1 was expected to spud around end September or early October.

drilling spud

Binding contract signed with Erdenedrilling for two CBM coreholes plus an option for a third. First spud is estimated late September or early October. The MD aims to book Mongolia's first gas discovery within six months.

contract award

Mongolia approved the Detailed Environmental Impact Assessment, the last approval needed for field work. This resolves the open EIA thread. Seismic of about 100-130 km is due in roughly three weeks, with drilling around September.

regulatory community update

Placement of 99.4m shares at 3.6c raises about $3.6m, leaving about $4.8m cash and 487m shares. Also: Mongolian exploration licence issued (10-year term), company renamed Elixir Energy, Neil Young made Managing Director. Detailed EIA still outstanding.

capital raising announcement

Seismic contract awarded to Mongolian firm Micro Seismic LLC. The survey is now 120 km targeting three identified CBM leads, down from the roughly 200 km regional plan. Signing early June; field work follows government approvals.

contract award

Richard Cottee, former Queensland Gas Company managing director (grew it to a $5.7b takeover by BG), becomes chairman, and Ray Barnes retires. Cottee gets $72,000 a year plus 7.5m options and 15m performance rights, subject to shareholder approval.

director officer appointment

Entek's side: it completed buying Emerald House (13 leases) from Elixir, issuing 185m convertible preference shares plus US$1,346,730 cash including the US$500,000 loan. Ferguson becomes Entek's Managing Director.

asset acquisition disposition

Elixir completed the sale of Emerald House (13 leases, 149,590 acres) to Entek for 185m preference shares and US$846,730 net cash. Holders get about 0.475 Entek shares per Elixir share. Ferguson steps down as MD but stays as non-executive director; Young continues as CEO.

asset acquisition disposition

The full 76.3m-option shortfall was placed, raising $762,525 and taking the option offer total to $934,625 before costs. Entek deal now expected to complete about 10 April 2019, returning about US$1.34m, or about US$840,000 net of the loan, for Mongolia.

capital raising announcement

Elixir accepted all 10 new Alaskan leases (114,167 acres), owing about US$1.25m by 26 February. Entek is lending US$500,000, secured over all Elixir assets at 12% interest payable only if the deal fails. On default Entek could convert the loan into a 17.5% Alaska interest.

debt financing

Elixir confirms Entek exercised its option to buy the Alaskan subsidiary for about 185m Entek shares. Elixir plans to distribute them, roughly 1 Entek share per 2 Elixir shares, after a capital reduction vote. Meetings in March; record date late March.

farm in farm out completion

Entek says it exercised its option on 31 January 2019 to buy Elixir's Alaskan subsidiary Emerald House, covering 149,733 acres, for about 185m Entek shares (up to 200m cap). Both companies' shareholder meetings are expected in March, with completion shortly after.

farm in farm out completion

Elixir completed buying Golden Horde on 14 December for 79m shares, giving it 100% of the Nomgon IX coal seam gas permit (7.6 TCF risked prospective). Neil Young joins as CEO and director on $250,000 a year. 80% of GOH holders are escrowed for 12 months.

asset acquisition disposition

Elixir launched a non-renounceable offer of up to 96.2m options, one for every four shares, at 1 cent each, exercisable at 7.5 cents by 31 December 2020. It would raise up to about $961,908, not underwritten, for exploration and Mongolian work.

capital raising announcement

Elixir was apparent high bidder on 10 more Alaskan leases covering 114,310 acres, next to its existing 35,423 acres. It paid a 20% deposit of about US$225,000. The leases fall under the Entek option, with completion targeted in Q1 2019.

asset acquisition disposition

Elixir exercised its option on Golden Horde on 30 November after shareholders approved the 79m consideration shares. Settlement is due within 10 business days. The company's focus shifts to the Mongolian coal seam gas project, with Alaska subject to the Entek option.

asset acquisition disposition

Entek Energy (ASX:ETE) announced an option to buy Elixir's Alaskan leases for up to 200m convertible preference shares in Entek, exercisable by 31 January 2019. Entek pays a $50,000 option fee. Mr Ferguson would move to Entek on completion.

farm in farm out agreement

Elixir granted Entek an option to buy its Alaskan acreage for up to 200m Entek shares, to be handed to Elixir shareholders, about one Entek share per two Elixir shares. This reverses the November Alaska purchase's role. Shareholders approved the 79m GOH shares at the AGM.

asset acquisition disposition

Independent firm ERCE put Nomgon IX's best-estimate unrisked recoverable prospective gas resource at 40.1 TCF (low 13.6, high 117.2). Risked best estimate is 7.6 TCF, at a 19% chance of discovery. This is undiscovered gas, and the first such figure for the permit.

resource reserve update

Elixir completed the purchase of 35,423 acres of Alaskan leases. The US$653,859 balance was released from escrow and a US$300,000 cash-backed bond was accepted by the regulator. GOH acquisition expected early December, subject to the 28 Nov AGM vote.

asset acquisition disposition

Elixir will give a 1-for-6 free bonus share issue, up to 42.4m shares, lifting issued shares to about 296.9m. A 1-for-4 option offer at 1 cent, exercisable at 7.5 cents to 30 Sep 2019, is proposed. GOH closing slips to early December.

security holder rights change

The Nomgon IX CBM PSC was signed in Ulaanbaatar on 18 September 2018. Field mapping starts now, seismic is planned for early Q2 2019 and drilling for Q3/Q4 2019. Golden Horde acquisition targets mid-November, subject to shareholder approval at the early-November AGM.

regulatory community update

Mongolia's Cabinet approved the Nomgon IX CBM PSC award to Golden Horde, ending months of delay; the GOH option now runs to 30 Nov 2018 with a $250,000 convertible loan to GOH. Elixir also signed to buy 35,423 Alaskan acres (US$803,859 back costs plus 5% royalty) and raised $1.65m.

asset acquisition disposition

Suspension extended to 16 August 2018. Because of the long Mongolian approval delays, Elixir is now negotiating with Golden Horde's shareholders to restructure the acquisition, a shift from the original 79m share terms.

listing compliance notice

Elixir shares were placed in voluntary suspension at the company's request on 14 June 2018, pending an announcement on the status and timing of the Nomgon IX PSC award to Golden Horde.

listing compliance notice

Elixir signed an MOU for an option, to 30 September 2018, to buy the company holding the conventional oil and gas rights over the Nomgon IX area. Consideration is a production royalty and a deferred payment, plus about US$800,000 of fees; commitments about US$26.8M. The CBM award was withdrawn at two Cabinet meetings.

asset acquisition disposition

French authorities renewed the Moselle permit on 23 December 2017 until 20 January 2019, ending the four-year renewal dispute in Elixir's favour. Elixir will seek advice on remedies and compensation, and a possible extension for the delay. France has banned new licences.

regulatory community update

Elixir signed a binding terms sheet, with a $25,000 option to 30 September 2018, to buy Golden Horde for 79 million shares. Golden Horde is seeking a Mongolian coal bed methane contract over 7 million acres. Award is a key condition and not guaranteed. A $1.6m placement was completed. New strategy after Petra failed.

business combination

Rodwell 14-31 will be plugged and abandoned after logs and the test showed the oil-bearing reservoirs are tight and unlikely to produce commercial quantities. Elixir's 25% share of the cost is about US$112,500. Resolves the first Petra well as a failure.

drilling result

Rodwell 14-31 at Petra reached 7,630 ft and found oil shows over a gross 10 metres in the primary target. An initial drill stem test suggests the reservoir is tight; logs will decide whether to test further or abandon. Commercial significance is not yet known.

drilling result

Rodwell 14-31 at Petra, Colorado, spudded and was drilling at about 900 feet, with surface casing set at 508 feet. Elixir holds 25% with Apollo operating at 75%. Primary targets are expected in about 15 days, with deepest at about 7,500 feet.

drilling spud

Elixir signed a joint operating agreement to take a 25% interest in the Rodwell 14-31 well, with drilling due early August 2017. It chose not to pay for the extra 25%, cutting its dry-hole share to about US$125,000 and net acreage to about 7,500. It keeps a royalty of up to 7.5%. Changes the earlier plan to earn 50%.

farm in farm out agreement

Elixir filed two applications in a Strasbourg court to overturn France's implicit rejection of the Moselle Permit renewal, after years of seeking renewal without litigation. It follows other parties' court wins; a ruling is expected in three to six months.

regulatory community update

Elixir and partner Apollo extended the Petra farm-in to 30 June 2017, with the Rodwell well scheduled for May 2017. Dry-hole cost is expected under US$500,000 and Elixir says it is now funded to earn its full 50% of 30,000 net acres. Moves the 31 December 2016 deadline.

farm in farm out agreement

The whole rights issue shortfall was placed with professional investors, raising a further $1,205,218. Total raised since 30 June 2016 is about $2.23m before costs, and shares on issue are 178,946,872. This completes the recapitalisation.

capital raising announcement

After shareholder approval on 16 August, Tranche 2 of the placement completed, raising $205,962 through 257,451,932 pre-consolidation shares. The 25-to-1 consolidation follows, then a 1:1 rights issue of about $1.8m, leaving about 179 million shares. This resolves the pending approval.

capital raising announcement

Elixir plans to raise about $2.2m: a placement of $234,038 now plus $205,962 subject to approval, then a 1:1 rights issue for about $1.8m after a 25-to-1 share consolidation. About 179 million shares would be on issue afterwards. Funds support existing assets and new ventures.

capital raising announcement

AWE told Elixir it has signed a deal to sell its 57.5% of Cliff Head to a third party and will not proceed with Elixir. This ends the acquisition pursued since October 2015. Elixir will keep focus on Petra and look at other production deals.

asset acquisition disposition

Elixir raised $258,320 via a placement of 258m shares, and offers a share purchase plan of up to $309,984, for up to $618,304 in total including a possible $50,000 from directors. Funds mainly go to the Cliff Head deal. Small relative to the $3m funding condition.

capital raising announcement

Elixir agreed to buy AWE's 57.5% of the producing Cliff Head oil field, Perth Basin, for $1m upfront plus up to $9m contingent on cash flow. Field produces about 1,500 bopd gross. It is conditional on due diligence and Elixir securing at least $3m of funding.

asset acquisition disposition

Elixir and Apollo extended the Petra farm-in by six months to 31 December 2016 and deferred further exploration spending commitments until after 31 March 2016. Directors will take 50% of fees in shares, subject to approval. Drilling is pushed back from the late Q3 2015 target.

farm in farm out agreement

Independent assessment of the Rodwell Prospect at Petra gives mean prospective resources of 2.5 million barrels net to Elixir, with an un-risked value of US$41.8m at US$50 oil. These are undiscovered estimates, with geological success chances of 24% and 19% for the two zones. Resolves the pending estimate.

resource reserve update

Sundance Energy (ASX:SEA) bought New Standard's 11.4% Elixir stake, about 122m shares at roughly $0.002 each, becoming Elixir's major shareholder. Sundance sold its DJ Basin assets in 2014 and may add expertise. Replaces New Standard's roughly 11.8% holding.

material agreement

Processed 2D seismic confirms at least two drillable prospects at Petra, one described as significant. Another 26 km of infill seismic will follow. Well costs fell about 30% to under US$700,000 dry-hole, with the first well on track for Q3 2015.

drilling scheduled

Elixir says it has hit its leasing target, with a 50% interest in about 30,000 net acres (the text also says about 15,000 net acres to Elixir). About 30 km of new 2D seismic starts February 2015, with two wells on track for Q3 2015.

asset acquisition disposition

Ray Barnes, a petroleum geoscientist with over 40 years' experience, is appointed independent non-executive Chairman, replacing Sam Willis, who stays on as a director. Michael Price will step down from the Board over the coming months.

director officer appointment

Elixir reached its initial leasing target in the Petra Project, with its 50% interest now over 12,500 net acres (over 25,000 acres jointly). Interpretation of 250 km of 2D seismic found new leads; new 2D seismic is planned for early 2015 and two wells in Q3 2015.

asset acquisition disposition

Petra acquisition completed with over 10,000 net acres, and the SPP closed fully subscribed, raising over $3m with the placement. Dougal Ferguson, CEO since 1 May 2014, becomes Managing Director. This resolves the pending Petra conditions and funding.

farm in farm out completion

Prospectus for the share purchase plan: up to 160m shares at $0.005 (up to $800k), with one free $0.015 option per two shares, plus up to 220m options to placement participants. It needs shareholder approval on 1 September 2014 and closes 29 August.

capital raising announcement

Elixir agreed to buy a 50% interest in 14,455 net acres in Colorado's Petra Project from Apollo for about US$700k, and pay the first US$1.5m of costs, with two wells planned for 2015. It has an option on Wattenberg acreage. Funding: $2.2m placement plus up to $0.8m share purchase plan via Hartleys. Marks the shift to US new ventures.

asset acquisition disposition

Chairman Alan Watson resigned from the board; Sam Willis, the New Standard Energy-linked director, becomes non-executive chairman immediately. Elixir's largest shareholder thus gains the chair.

director officer appointment

March quarter: strategic review completed, with focus on keeping Moselle value and pursuing international new ventures. Dougal Ferguson becomes CEO from 1 May 2014 on $260k salary plus 15m options at $0.01. Sunset relinquished, High Island approval pending, cash about $0.9m, debt free.

quarterly activities report

Adriatic's reprocessing of the Sunset 3D seismic found too little prospectivity to justify the second exploration period, and Elixir (20%) agreed. The blocks were relinquished, ending the UK North Sea position. Elixir now focuses on Moselle and new ventures.

asset acquisition disposition

Elixir agreed to sell its 30% High Island interest to operator Peregrine, subject to regulatory approval. Consideration, paid into escrow, is expected to be below its share of abandonment costs. Elixir then has no further well-plugging or insurance obligations. Resolves the options review.

asset acquisition disposition

Elixir amends the Adriatic farmout of Inner Moray Firth licence P1921 (Sunset): Adriatic takes a further 55% for 80% total and becomes operator, funding seismic reprocessing and farmout costs. Elixir keeps 20%, free-carried to the drill-or-drop decision. Cuts Elixir's stake from 75% as it refocuses on Moselle.

farm in farm out agreement

Shortfall placed, completing the roughly $1.85m raising at $0.012. Shares on issue rise from about 277m to 431,278,356, a roughly 55% increase. Funds are for Moselle progress.

capital raising announcement

Elixir launches a fully underwritten rights issue at $0.012 a share, 5 new for every 9 held, to raise about $1.85m (154m shares). Underwriter is Argonaut; New Standard sub-underwrites $750k and may reach up to 28.2%, with a top-up to 19.99%.

capital raising announcement

RPS's independent report on three Moselle prospects gives mean unrisked recoverable resources of 861 Bcf gas, or 805 Bcf gas plus 76 million barrels of oil if the Triassic is oil-filled. This verifies Elixir's own work, though it covers only three prospects.

resource reserve update

Strategy reset around Moselle: UK office closed, costs expected to roughly halve, and Managing Director Andrew Ross steps down to part-time. Cash about $1.5m at 31 March, debt free. Argonaut Capital appointed financial adviser; several parties in the Moselle dataroom.

other

Elixir's own estimate for Moselle's nine conventional prospects: 3,748 Bcf gas in place and 2,130 Bcf unrisked mean recoverable. This supersedes the earlier risked 559 Bcf figure and underpins the farmout, with parties now in the dataroom.

resource reserve update

Adriatic Oil takes 25% of the Inner Moray Firth licence P1921 (Sunset prospect) by funding 3D seismic interpretation and contributing to Elixir's past costs. Options for a further 25% exist. Elixir stays operator. Completed 7 December 2012. Resolves the farmout search for this licence.

farm in farm out agreement

Over 30 companies reviewed Moselle, but France's fraccing ban made farminees struggle to value the unconventional play. Elixir has refocused the farmout on conventional prospects and reserved the unconventional resource for later. The Q2 2012 farmout expectation has not been met.

farm in farm out agreement

The entitlement issue closed with 392 valid applications for 24.2m shares ($1.21m). New Standard, as underwriter, takes the 9.93m-share shortfall ($496,420). Together with the placement, the raising totals about $2.1m from the entitlement and placement.

capital raising announcement

Elixir will raise about $2.2m: a $400,000 placement of 6.4m shares to New Standard at $0.0625, plus a 1-for-6 entitlement issue at $0.05 (up to ~$1.81m), fully underwritten by New Standard for no fee. Follows the earlier flagged capital raising options.

capital raising announcement

New Standard Energy (ASX:NSE) plans to take up to a 15% stake in Elixir for up to about $2.25m, via a placement at 6.25 cents plus underwriting of Elixir's 5 cent entitlement issue. It is a strategic investor in Moselle.

capital raising announcement

Elixir was awarded Blocks 12/18 and 12/19a in the Inner Moray Firth, UK North Sea, as 100% holder and operator under promote licences. One large untested prospect is identified; work is 3D seismic purchase, with a drill-or-drop decision due by early 2014.

asset acquisition disposition

Elixir terminated the Tiger farmout after the farminee, despite winning DECC consent, had its funding source fail to perform. The farminee is suing the funder and seeking other funding; Elixir may re-engage if it succeeds, and is seeking a new farminee. Ends the July 2011 deal.

material agreement termination

Jonathan Stewart resigned as non-executive chair effective 29 November 2011, citing time demands of his Aurora Oil & Gas role. Alan Watson, announced earlier as chair-designate, takes over as chair, completing the planned handover.

director officer appointment

The French Government confirmed the Moselle Permit remains valid, with 61 of 64 permits upheld. Three permits held by Total and Schuepbach were abrogated under the fraccing law. This removes a permit-loss risk for Elixir after the ban.

regulatory community update

Elixir is raising up to A$1.132m through 28.3m shares at $0.04, with largest shareholder Aurora taking part, to fund Moselle well planning. Issued shares rise to 217.3m. Alan Watson joins the board and is expected to replace Jon Stewart as chair at the November AGM.

capital raising announcement

NSAI's independent Moselle estimate: unconventional best-case in-place 164.7 billion bbl oil and 649.7 Tcf gas, plus conventional mean 2.1 billion bbl oil or 2.2 Tcf gas across 19 prospects. These are in-place volumes, not reserves; Elixir plans up to three wells in 2012. Resolves the long-pending estimate.

resource reserve update

Elixir conditionally farmed out Tiger (Block 211/12b, 90 MMbbl most likely) to a private explorer taking 85% and operatorship, carrying Elixir's 15% through a firm well and a contingent appraisal well (~£30m total). Needs DECC approval; spud targeted first half 2012. This advances the long-running Tiger farmout thread.

farm in farm out agreement

France passed a law banning hydraulic fracture stimulation, effective once published. Elixir says it did not plan to frac at Moselle and still expects its maiden resource estimate in Q3 2011. This overtakes the mid-June government study as the key regulatory event for its unconventional ambitions.

regulatory community update

Moselle studies are described as very encouraging, with at least six sub-plays identified. The farmout marketing is delayed to early second half 2011, pending further technical work and a French government unconventional-gas study due mid-June, with drilling paused meanwhile. Independent resource estimate still pending.

regulatory community update

Award of Block 30/25a in the Central UK North Sea was finalised, with Elixir 100% operator on a two-year promote licence from 10 January 2011 and a drill-or-drop decision before expiry. It holds three mapped prospects. This resolves the provisional November offer.

asset acquisition disposition

Elixir was provisionally offered the southern part of Block 30/25 in the UK 26th licensing round, as 100% operator on a promote licence. This delivers on its stated plan to join the round. Award is subject to usual regulatory approvals.

asset acquisition disposition

Elixir completed the acquisition of East Paris Petroleum Development after French government approval, giving it 100% of the 5,360 km2 Moselle Permit. This resolves the pending condition. Seismic reprocessing of over 500 km and review of 105 wells are under way.

asset acquisition disposition

Elixir agreed to buy East Paris Petroleum Development, holder of the 5,360 km2 Moselle Permit in onshore France, for cash and advisory payments totalling US$1m plus an overriding royalty. Completion needs no French ministerial objection. It is the company's first onshore Western Europe entry, targeting conventional and shale gas.

asset acquisition disposition

The Leopard licence (Block 211/18b, Elixir 56% operator) was relinquished on 21 December 2009 after no farmout partner was found to share drilling costs. This resolves the drill-or-drop thread negatively. Elixir will pursue the 26th UK licensing round and keeps Mulle and Tiger.

material agreement termination

The Pompano Well #1 workover was completed and the well is flowing about 3.3 MMscf/d of gas, with water declining to about 325 bbl/d. Rates are being held back during clean-up. This resolves the Well #1 workover thread, with the result so far encouraging.

well test result

Elixir sold its UK subsidiary, whose only asset was the 15% Sierra Leone SL-4 interest, to Prontinal for about US$255,000 cash plus a royalty capped at US$5m. Prontinal indemnifies Elixir, which says its involvement in the TGS arbitration is now ended. This resolves the SL-4 dispute thread.

asset acquisition disposition

The UK regulator waived the drill-or-drop decision date on the Leopard licence (Block 211/18b). A well must now be spudded by 21 December 2009 or the licence is relinquished. This buys time for the ongoing farmout search for the roughly 350 million barrel prospect.

regulatory community update

Half-year to December 2008 shows a loss of A$21.5m, including A$24.7m of non-cash and other items such as a A$12.9m Gulf of Mexico impairment and expensed Well #3 costs. EBITDAX was A$3.1m; cash is about A$9.8m and the company is debt free.

half year report

Seismic contractor TGS has started arbitration over about US$9.3m for the Block SL-4 survey, naming Elixir's UK subsidiary and Prontinal. Elixir says Prontinal is responsible and will defend vigorously. A BVI hearing on winding up Prontinal is set for mid-March.

joint venture update

Elixir will cancel its AIM listing on 31 March 2009, citing costs and a low trading volume on AIM against an Australian-focused shareholder base. UK holders' shares move automatically to the ASX register; ASX remains the primary listing.

listing compliance notice

Elixir's UK subsidiary forfeited partner Prontinal's whole interest in Sierra Leone Block SL-4 after negotiations failed. Prontinal will contest this. The seismic contractor has served a statutory demand of about US$2.58m, which Elixir is seeking to set aside.

joint venture update

Elixir won two blocks in the UK 25th Round. Block 211/27d, next to Mulle, is 40% Elixir. Block 211/12b is 100% Elixir and operated, holding the Tiger prospect with a 90 MMbbl most-likely in-place estimate (if hydrocarbon bearing). This resolves the pending awards.

regulatory community update

Buccaneer reports Pompano Well #3 reached 8,315 ft and found 12 ft of net gas pay in the 6700 Sand. Deeper sands were structurally lower than predicted, so not commercial there. Well #1 has stopped producing due to water and needs a workover. Elixir holds 25%.

drilling result

Pompano is back at pre-storm rates, but both High Island wells stay shut in until a damaged export pipeline is repaired, estimated at six weeks. Management says output is deferred, not lost, and Elixir has about A$9m cash.

production update

Buccaneer reports Pompano's third well, SL 103230 #4, spudded 22 September 2008. It was at 3,005 ft with caisson driven and upper hole sections cased. Target depth is about 8,380 ft, roughly four weeks. Elixir holds 25%.

drilling spud

Elixir issued a default notice to Sierra Leone Block SL-4 partner Prontinal for unpaid 3D seismic costs. The contractor has demanded about US$9m from an Elixir subsidiary. Elixir is seeking legal advice and says resolution is advanced; forfeiture of Prontinal's equity is possible but not considered likely.

joint venture update

Entitlement issue take-up was only about 9.7% (1.95m shares, A$527k). The underwriter terminated after a market fall, but directors placed ~5.9m shortfall shares at 27c (A$1.6m). Elixir says cash is about A$12m.

capital raising announcement

Buccaneer says the operator has contracted a Hercules rig for third Pompano well SL 103230 #4, expected to spud late July 2008. It targets up to six sands in an adjacent fault block, with an option for a fourth well. Elixir holds 25%.

drilling scheduled

Elixir says a rig is contracted for the third Pompano well, due on site late July 2008, with partners yet to approve the well proposal. Elixir expects May and June US net revenues above US$2.75m, a record.

drilling scheduled

Elixir launches a raising of up to 53.64m shares at 27c to raise up to A$14.5m: placements plus a 1-for-8 underwritten entitlement issue. Funds go to more Pompano wells, Sierra Leone and North Sea work. Price is a 12.3% discount to the 5-day average. Blue Oar appointed AIM adviser.

capital raising announcement

Operator DNO booked a contingent resource for the Mulle oil accumulation in Block 211/22b: 17 MMboe most likely (36 MMboe high case). Elixir's 40% share is almost 7 million barrels. Partners will seek a farminee to fund a 2009 appraisal well, aiming for first oil by 2010.

resource reserve update

Independent report gives Pompano's first two wells 2P reserves of 17.6 Bcf gas and ~48,200 bbl condensate (Elixir net 3.1 Bcf, before back-in). First sales cash received 14 May; next well to spud Q3 2008; Sierra Leone seismic ~60% done.

resource reserve update

Elixir confirms Pompano Well #2 on production 1 May 2008 at about 8 MMscf/d and 30 bbl/d condensate. Field output is about 14.6 MMscf/d with Well #1 at 6.6. Resolves the open question on Well #2 start-up; 5.5% back-in remains after 120% payout.

production update

Buccaneer reported Pompano Well #2 went on production on 1 May 2008 and stabilised near 8.0 MMcf/d. Together with Well #1, which was performing to expectations at about 6.6 MMcf/d, the two wells produced about 14.6 MMcf/d. Elixir holds 25%.

production update

Elixir reports Pompano Well #2 flow tests: the E sand flowed 6.1 MMscf/d with 30 barrels a day of condensate, and the B sand 0.8 MMscf/d. E-sand pressure was well above pre-drill estimates. The C sand was non-commercial. Production is expected within about 10 days.

flow test result

Buccaneer says Pompano Well #2 tested 74 ft of net gas pay. The E sand flowed 6.1 MMcf/d plus 30 barrels a day of condensate, with near-original pressure of 4,820 psi versus 2,500 psi expected. The C sand did not flow. Combined rate is expected near 7 MMcf/d.

flow test result

3D seismic acquisition began on 30 March 2008 on Sierra Leone Block SL-4, covering 1,222 km², larger than the 1,000 km² earlier announced. Completion is expected by early June 2008. It satisfies the first-period minimum work programme, with drill-ready prospects for farm-out targeted for 1H 2009.

regulatory community update

Elixir acquires a 15% interest and operatorship of Block SL-4, offshore Sierra Leone (4,429 km²), with an option on a further 20%. It must fund a 1,000 km² 3D seismic survey to begin by Q3 2008. A new frontier exploration area beyond its US and UK holdings.

asset acquisition disposition

First gas from Pompano Well #1 flowed on 9 March 2008, with rates in line with expectations, about 13 weeks after field work began. Elixir's 25% interest now earns gas sales alongside High Island. This delivers the mid-March target.

production update

Elixir confirms Pompano Well #2 has spudded, targeting about 9,360 ft in roughly 28 days. This is the follow-up to Well #1's success. Pipeline testing between the B caisson and A platform will decide when Well #1's first gas arrives.

drilling spud

Buccaneer reports Pompano Well #1 flow tested at 1.501, 1.430 and 5.342 million cubic feet a day from three gas sands. The two sands to be produced are expected to give 6-7 million cubic feet a day combined. Elixir holds 25%.

flow test result

After Well #1's success, Pompano partners have taken up a rig option to drill a second well, SL 103230 #1. It should spud within about 7 days of the rig being released in roughly 14 days. Buccaneer has options on 5 additional wells.

drilling scheduled

Pompano Well #1 reached 7,821 ft on 26 January with gas in three sand groups. The joint venture judges the pay commercial and will complete it as a producer in about 15 days. This is a success for Elixir's 25% first well.

drilling result

Elixir will issue 8,571,429 unsecured convertible notes at $0.35 to Macquarie Bank, raising $3.0m for Pompano drilling and working capital. Notes convert at $0.35 to 31 Dec 2008, otherwise redeem 31 Jan 2009; interest is 10% a year.

capital raising announcement

Pompano Well #1 spudded on 12 January 2008 and had reached 808 ft the next morning. This is the first well of the project in which Elixir holds 25%. Weekly Tuesday drilling updates will follow.

drilling spud

Jonathan Stewart became Chairman and Andrew Ross Managing Director from 29 November 2007. John Robertson stays as a non-executive director. Russell Langusch resigned as Managing Director and stays until mid-February to help integration after the Gawler merger.

director officer appointment

The Gawler merger completed 13 November 2007 and Gawler was delisted. Elixir now holds 30% of High Island, producing about 17.5 MMcf of gas and 200 barrels of condensate daily since September. It also holds 25% of Pompano, whose joint operating agreement is signed.

production update

Gawler share and option holders approved the Elixir merger schemes at their 19 October meetings, with about 98% of votes in favour of the share scheme. Only Federal Court approval, hearing set for 25 October, remains.

business combination

Elixir proposed issuing 10.7m convertible notes at A$0.25, raising about A$2.7m, to fund Gawler's Gulf of Mexico development. The notes carry an 8% coupon and convert into Elixir shares at A$0.25 or are redeemable in November 2008. Underwritten by Argonaut.

capital raising announcement

The Leopard (Block 211/18b) farmout to RWE Dea for 30% was signed, as flagged in February. Elixir drops to 56%, RWE 30%, Sosina 14%, subject to government consent. Another farminee is still being sought to cover most of the well cost.

farm in farm out completion

Elixir agreed to merge with Gawler Resources by scheme of arrangement: one Elixir share per Gawler share, giving Elixir holders 52% of the group. Adds a 30% interest in High Island A268 (Texas gas, due on stream September 2007). Elixir funds Gawler with up to A$5m.

business combination

Elixir sets out 12-18 month plans: cash is about A$9.7m (13.6 cents a share), with no new capital needed for now. The Granby alliance has ended after disappointing results. Focus shifts to Leopard (56%), Jaguar area and Panther, plus a search for production assets.

other

Guinea reached 2,176m and found no significant hydrocarbons in the Palaeocene objective, so it is being plugged and abandoned. Elixir keeps 13.125% and bore no well cost. This is the third dry well; deeper prospectivity in the block is unaffected.

drilling result

The Guinea well (15/13b-8) spudded on 26 February 2007, targeting Palaeocene Balmoral sandstone to about 2,150m in roughly 20 days. Nexen and Gas Plus fund Elixir's 13.125% share. Ends the long run of delays.

drilling spud

Elixir accepted an offer from RWE Dea to farm into the Leopard block (211/18b) for 30%, funding part of a well. Elixir's interest drops from 80% to 56%. A formal agreement is due by 30 April 2007, and a further farminee is sought.

farm in farm out agreement

Elixir and partners DNO and Sosina were offered a Promote licence over Central North Sea Block 21/16b in the 24th Round. Elixir would operate with 40%, with four Upper Jurassic prospects identified. Resolves the awards thread with one licence.

regulatory community update

December quarter report: Guinea slips again to about mid-February, at no cost to Elixir. Elixir gave up three 22nd Round licences, leaving eight UKCS licences with 262 mmbbl unrisked mid-case. Leopard farmout is expected soon; 24th Round awards are still pending.

quarterly activities report

Elixir is placing 6.5 million shares at 40 cents each to sophisticated investors, raising A$2.6m, managed by Argonaut Securities. Funds are for opportunities in the existing portfolio and adding new ones.

capital raising announcement

Elixir farmed out part of Block 15/13b (Guinea) to Nexen (operator, 50%) and Gas Plus, alongside Albion. Elixir keeps 13.125% with its well costs fully funded by partners. The well is planned for the last quarter of 2006, to about 1,600m. This firms up the Albion deal.

farm in farm out agreement

Elixir signed a Heads of Agreement with Albion Petroleum to farm out three to five of its 22nd Round-area licences. Albion would fund at least C$10m (£5m) of exploration wells, with the first well expected on Block 15/13b (Guinea) later in 2006. The deal is subject to approvals and a final agreement.

farm in farm out agreement

Jaguar failed to find commercial hydrocarbons at 3,977m; oil shows over 17m in the Middle Jurassic could not be sampled because of low permeability, and the well is being plugged. It resolves the Jaguar thread, though Elixir's 40% licence remains with further evaluation planned.

drilling result

The Jaguar well (211/22b-5) spudded on 23 January 2006 using the Bredford Dolphin rig, with about 45 days of drilling planned to roughly 4,000m. Elixir keeps a 40% interest and will not update until the target is reached.

drilling spud