Update on Leopard Prospect

    RNS Number : 6531K
  Elixir Petroleum Ltd
  23 December 2008
   

    Elixir Petroleum Limited
    (AIM : ELP)

    23 December 2008

    UPDATE ON LEOPARD PROSPECT 

    Elixir Petroleum Limited ("Elixir"), the international oil and gas exploration and production company advises that the UK Department of
Energy and Climate Change has agreed to a 4 month extension of the licence term on Block 211/18b (Licence P.1381) ("Leopard Prospect") to 21
April 2009. 

    The extension to the licence term will provide Elixir additional time to complete the farm out of the unfunded portion of the planned
Leopard exploration well. The Leopard Prospect, which is located in the northern sector of the UK North Sea, is one of the largest remaining
undrilled oil targets in the North Sea, with a mean prospective resource estimate of approximately 350 million barrels. 

    Commenting on the announcement, Elixir's Managing Director, Andrew Ross said:

    "The granting of an extension is good news and will assist in our efforts to secure a further partner in the short term to assist us
with the drilling of the Leopard Prospect in 2009."

    Ross also said: "We noted with interest the result of the recent Cladhan well drilled in the northern North Sea which also targeted
Upper Jurassic sandstones in a stratigraphically controlled play type, similar to the Leopard Prospect. It has been reported the Cladhan
well discovered a 34m oil column and that the reservoir has excellent interpreted porosity and permeability. We are confident the Cladhan
discovery proves the viability of Upper Jurassic plays in the northern North Sea and significantly de-risks the Leopard Prospect. We believe
that the Cladhan discovery, together with the updated geobody studies undertaken by Elixir in the second half of 2008, has further upgraded
the Leopard Prospect." 

    Ross added: "Furthermore, the current financial market crisis and commodity price falls is somewhat of a mixed blessing in this case. We
recognise deals are harder to close, but with companies currently reducing their drilling activities in the North Sea, rig slots have become
available in 2009 and rig rates have fallen significantly. "

    Information contained in this announcement with respect to Block 211/18b, has been reviewed by Elixir's Exploration Director, Iain
Knott, BSc,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 announcement of the information in the form and context in which it appears

    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]


 Conduit PR
 Jonathan Charles
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