Pompano Update - Well #2

RELEASE 15 April, 2008 POMPANO PROJECT - OPERATIONAL UPDATE - WELL #2 Elixir Petroleum Limited ("Elixir"), the international oil and gas exploration and production company (ASX:EXR, AIM:ELP), is pleased to provide an update on completion operations on Well SL 103230 #1 ("Well #2") at the Pompano Gas Field at Brazos Block 446-L SE/4. Since our last announcement, the operator has advised that the dual string completion has been run into the hole and that preparations to perforate the three reservoir intervals, being the B, C and E sands, are underway. It is expected that on a trouble free basis the completion operations will be finalised and the well placed on production towards the end of April. The Participants in Well #2 and their respective working interests are: Elixir Petroleum Ltd * 25.0% Buccaneer Energy Ltd * 65.0% Baron Petroleum Inc. 7.5% Streamline Exploration Inc. 2.5% 100% * Interests held indirectly via their respective shareholdings in wholly-owned subsidiaries. Elixir's 25% working interest in Well #2 will be reduced by 5.5% pursuant to a 'back-in' arrangement with the Operator once Elixir has recouped 120% of its total investment in the well. For further information please contact: Elixir Petroleum Limited Alex Neuling, Company Secretary +61 8 9440 2650 Seymour Pierce Limited +44 207 107 8000 Jonathan Wright Pompano Project - Background The Pompano gas field lies offshore in the Gulf of Mexico, in Brazos Block 446-L SE/4, which is approximately 90 miles southwest of Houston Texas. The field is approximately 7 miles offshore in 55 feet of water. Schematic: Pompano Field Layout The Pompano gas field was discovered in 1966 and produced over 120 billion cubic feet of gas prior to being shut-in in 2003. The Pompano Project is essentially a re-development of the Pompano gas field with new well locations based on modern 3D seismic data. Well #1 was directionally drilled in January 2008 from the field's existing "B" satellite platform to 7,825 feet measured depth. Well #1 intersected three gas bearing sands located between 6,700 feet and 7,426 feet measured depth which were successfully flow tested. Production commenced from this well in early March 2008 from the B and 6700A sands. Well #2 spudded in late February 2008 and was directionally drilled from the field's existing "A" Production Platform. Well #2 encountered a number of gas bearing sands and is being completed over the B, C and E sands. The Pompano Project is using the field's extensive existing production and pipeline facilities, which has achieved a significant capital cost saving and a reduction in time to production for the project. ---END OF MESSAGE--- http://hugin.info/138280/R/1209299/249858.pdf