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Elixir Petroleum Ltd (ELP)

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Tuesday 06 May, 2008

Elixir Petroleum Ltd

Operational Update

Elixir Petroleum Ltd
06 May 2008


                            Elixir Petroleum Limited
                   ('Elixir' or the 'Company': Ticker (ELP))

                                  6 May, 2008

                    POMPANO PROJECT - WELL #2 ON PRODUCTION

   • Well #2 placed on production on 1 May 2008

   • Well #2 has achieved a stabilised flow rate of 8 MMscf/d and 30 BCPD

   • Total field production is approximately 14.6 MMscf/d and 35 BCPD


Elixir Petroleum Limited ('Elixir'), the international oil and gas exploration
and production company (ASX:EXR, AIM:ELP), is pleased to announce that Well SL
103230 #1 ('Well #2') at the Pompano Gas Field, offshore the Texas Gulf Coast
was placed on production on 1 May 2008.

Production rates at Well #2 have stabilised over the past few days at a combined
rate of approximately 8 million standard cubic feet of gas per day ('MMscf/d')
from the B and E sands. The well is also producing approximately 30 barrels of
condensate per day ('BCPD') from the E Sand.

Well #1 at the Pompano Project continues to produce on expectation at
approximately 6.6 MMscf/d and approximately 5 BCPD. This provides a combined
total production result from the Pompano Project of approximately 14.6 MMscf/d
and 35 BCPD.

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

'We are delighted with the production result that has been achieved from Well #2
at Pompano. The result is particularly pleasing given the historically high gas
prices being realised for gas production at Pompano. We look forward to
reporting on further planned activities at the Pompano Project in the near
term.'

The Participants in the Pompano Project 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 Pompano Project.

Information contained in this report with respect to the Pompano Project, was
compiled from material provided by the project operator, AnaTexas Offshore Inc.,
and reviewed by the Company's Operations Manager, Mr. I L Lusted, BSc (Hons),
who has had more than 15 years experience in the practice of petroleum
engineering. Mr Lusted consents to the inclusion in this announcement of the
information in the form and context in which it appears.

For further information please contact:

Elixir Petroleum Limited
Alex Neuling, Company Secretary
Tel: +61 8 9440 2650

Seymour Pierce Limited
Jonathan Wright
Tel: +44 207 107 8000




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