Block 211/12b

Block 211/12b is located in the Northern sector of the UK North Sea, approximately 160 km north east of the Shetland Islands, in a water depth of approximately 185m. The block lies 5km to the east of the Magnus Field which was brought on-stream by BP in 1983 with an in-place volume of approximately 1.5 billion barrels of oil. Block 211/12b was awarded to Elixir in early 2009 and contains a newly mapped prospect named Tiger.

The target reservoir in the Tiger prospect is the Magnus Sandstone Formation, over 109m of which were encountered in the down dip 211/12b-15 well drilled in 1992. The equivalent sands in the nearby Magnus Field have excellent porosity and permeability characteristics. Evidence from fluid inclusion studies of the Magnus sands in the 211/12b-15 well indicates the presence of a nearby hydrocarbon column. Reservoir presence and quality are considered to be low risk, as is hydrocarbon charge. The trapping mechanism is a combination trap, with an interpreted pinch out seal along the western edge of the trap and a normal fault to the North east providing structural closure. Fluid inclusion analysis indicates that an effective top seal is present immediately overlying the target reservoir along the pinch out.

The forward work programme is designed to de-risk this parameter and finalise a well location. Work is also being undertaken to determine resource potential and to prepare an outline development plan.

Elixir Petroleum (Europe) Ltd is the operator and 100% interest holder in Block 211/12b.

Blocks 211/22b & 211/27d

Block 211/22b, to the east of the Cormorant field (650 million barrels), hosted a large Upper and Middle Jurassic prospect named Jaguar which was tested by the 211/22b-5 well in the first half of 2006. This well was the first test of Elixir's Upper Jurassic play in the Northern North Sea. Although commercial hydrocarbons were not found at this location, the well did intercept residual oil in the Middle Jurassic.

This led to a re-examination of prospectivity of the southern section of the licence and a review of the logs of a well drilled in the south of the licence in the 1970's. This review identified a 18m oil column in the well and further interpretation of 3D seismic data together with the success of the adjacent Causeway development has resulted in the mapping of a 20 million barrel oil discovery named Mulle in Block 211/22b. The joint venture was successful in applying in the 25th Round for Block 211/27d which was awarded in early 2009. Block 211/27d contains an interpreted extension to the Mulle accumulation which is likely to increase the reserve estimate for the field.

The Mulle joint venture is considering appraisal options for the field and is in discussions with industry participants.

Elixir Petroleum (Europe) Ltd holds a non-operated 40% interest in Blocks 211/22b and 211/27d.