RNS Number : 2615I
  Elixir Petroleum Ltd
  17 November 2008
   

    Elixir Petroleum Limited
    (AIM : ELP)

    17 November 2008

    SUCCESSFUL RESULT IN UKCS LICENSING ROUND

    Elixir Petroleum Limited ("Elixir"), the international oil and gas exploration and production company, is pleased to announce that it
has been awarded interests in Blocks 211/27d and 211/12b in the UK Continental Shelf 25th Seaward Licensing Round ("the Round"), further
consolidating the Company's position in the northern sector of the UK North Sea.

    Block 211/27d - Extension of Mulle Project

    Block 211/27d is located immediately adjacent to Block 211/22b, which contains the Mulle appraisal project. Block 211/27d hosts a mapped
southern extension of the Mulle accumulation. Mulle was discovered through the drilling of an exploration well in the 1970's which
encountered a 17m gross oil column in the middle Jurassic Brent sequences, but was not flow tested at the time. In May 2008, the block
operator published a most likely in-place resource estimate of 17 million barrels of oil, providing Elixir with a net interest of almost 7
million barrels of oil. With the award of Block 211/27d, this resource estimate is likely to increase. 

    Elixir holds a 40% working interest in Block 211/22b and the newly awarded Block 211/27d.

    Block 211/12b - Tiger Prospect

    Block 211/12b is located in the Northern North Sea, approximately 140km north east of the Shetland Islands, in a water depth of
approximately 125m. Block 211/12b contains a newly mapped prospect named Tiger. The block lies 5km to the east of the Magnus Field which was
brought on-stream in 1983 with an in-place volume of approximately 1.5 billion barrels of oil.

    The target reservoir in the Tiger prospect is the Magnus Sandstone Member, over 500 ft of which was encountered in the down dip
211/12b-15 well. The equivalent sands in the nearby Magnus Field have excellent porosity and permeability characteristics. Evidence from the
211/12b-15 well also indicates the presence of a nearby hydrocarbon column. Reservoir presence and quality are considered to be low risk as
is hydrocarbon charge.

    Elixir's original oil in-place volumetric resource estimate for the Tiger prospect is as follows:

            P90       P50       P10 
          (mmbbls)  (mmbbls)  (mmbbls)
 STOOIP*     37        90       214
    * If hydrocarbon bearing

    Elixir holds a 100% working interest in the Block and is operator. The Block has been awarded for a licence term of 4 years with a drill
or drop decision required at the end of year 3. 

    The execution of the licence agreements with the UK Government for Blocks 211/12b and 211/27d will occur in the coming weeks.

    Commenting on the announcement, Elixir's Managing Director, Andrew Ross, said "we are delighted to have been awarded interests in two
blocks in the recent 25th Round. This is the fourth time Elixir has participated in the Seaward Licensing Rounds in the UK with success. The
securing of Block 211/27d adds to our Mulle acreage position and should see an uplift in the mapped resource estimate for the field."

    He also added, "Block 211/12b, which contains the Tiger prospect, is an exciting and significant addition to our portfolio of interests
in the Northern North Sea and we are looking forward to working up the prospect to drill ready status over the coming months."


 Information contained in this announcement with respect to Block 211/27d and Block 211/12b, was compiled by Elixir and reviewed by Elixir's
Executive Director - Exploration, Mr I Knott, MSc, FGS, AAPG, who has had more than 25 years experience in the practice of
 geology, including more than 5 years experience in petroleum geology. Mr Knott consents to the inclusion in this report of the information
in the form and context in which it appears.


 For further information, please visit the Company's website at www.elixirpetroleum.com, or contact:

 Elixir Petroleum Limited                                                                                                                   
                                                                               Blue Oar Securities Plc
 Alex Neuling                                                                                                                               
                                                                               Jerry Keen / Olly Cairns
 Tel: (+61) 8 9440 2650                                                                                                                     
                                                                               Tel: (+44) 207 448 4400 / (+61) 8 6430 1631


 Conduit PR
 Jonathan Charles
 Tel: (+44) 207 429 6666


This information is provided by RNS
The company news service from the London Stock Exchange
 
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