Update on Block SL - 4

    RNS Number : 3901E
  Elixir Petroleum Ltd
  26 September 2008
   
                                                                  Elixir Petroleum Limited
    (AIM : ELP)

    26 September 2008

    UPDATE ON BLOCK SL-4 

    Elixir Petroleum Limited ("Elixir", ASX:EXR, AIM:ELP), the international oil and gas exploration and production company provides an
update on matters associated with Block SL-4, located offshore the Republic of Sierra Leone, of which it is the operator and 15% working
interest holder.

    Elixir has today issued a notice of default to Prontinal Limited, its joint venture partner in Block SL-4. The notice of default relates
to the failure on the part of Prontinal to meet outstanding payments with respect to the 3D seismic acquisition project which was recently
concluded over the licence. As a result of Prontinal's default, a letter of demand has been received by a subsidiary of Elixir from the
seismic contractor in relation to the unpaid amount of approximately US$9 million. Elixir is seeking clarification from the seismic
contractor in relation to the alleged debt and the letter of demand and is also seeking legal advice.

    Elixir understands that Prontinal is in negotiations with third party funding sources to secure the necessary funds to meet its
outstanding obligations and future foreseeable commitments with respect to Block SL-4. Elixir is endeavouring to work with Prontinal to seek
the timely resolution of these issues and has been advised that arrangements to resolve these matters are advanced.

    Were Prontinal ultimately unable to meet its obligations and remedy the default with regard to Block SL-4, Elixir has certain rights to
have forfeited to it the equity in the licence held by Prontinal, although this is not a preferred outcome or considered likely at this
time. 

    Elixir will keep the market informed of developments as they arise in relation to this matter.

 For further information on Elixir, 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: [phone]                                                        Tel: [phone]
                                                                                                                 1631


 Conduit PR
 Jonathan Charles / Sarah Alexander
 Tel: [phone]


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