Menu

Australian Shares is the world's biggest free online database of information on Australian resource companies.

Time to Update your company profile
Australian Shares

ELIXIR PETROLEUM LIMITED

ASX: EXR

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Elixir Petroleum is an international exploration and production company listed on the Australian Stock Exchange (ASX:EXR). Elixir holds interests in producing gas and condensate fields located in the Gulf of Mexico and has interests in exploration and appraisal licences in the UK North Sea Elixir also operates a very large exploration permit in the East Paris Basin onshore North-eastern France.

Europe has been targeted by Elixir as a core exploration area based on the view that the region remains highly prospective for oil and gas, including unconventional hydrocarbon resources. The area benefits from low political risk, a very large energy market, attractive fiscal conditions and established oil and gas infrastructure.

The shallow shelf of the Gulf of Mexico is an attractive region in which to pursue appraisal and development opportunities and features a superior operating environment to many other regions, with ready availability of rigs and oil industry services, extensive infrastructure and typically short cycle times to first production. Elixir’s producing fields in the Gulf of Mexico provide the group with cashflow from sales of gas and condensate.

High Island, Offshore Texas USA

The High Island field is a gas and oil field located in 169 feet of water offshore Texas in the Gulf of Mexico. The field is surrounded by a number of producing fields and associated oil and gas infrastructure. Oil and gas was discovered and wire line tested in several reservoirs in six wells drilled on the High Island field between 1984 and 1989, but was not produced due to low commodity prices at the time and perceived reservoir continuity risk. All wells were previously drilled on 2D seismic. The acquisition of 3D seismic in 1995, and its modern re-processing in 2004, has allowed the known reservoirs to be individually defined, significantly reducing reservoir continuity risk.

Drilling of the High Island A-1 well was completed in January 2007 and discovered commercial gas in high quality reservoir sands in two separate reservoirs. The High Island A-1 well was cased and temporarily suspended pending the installation of a production platform and pipeline. The design and fabrication of the High Island HI-268A unmanned production platform and jacket was completed in early June 2007. The installation of the platform commenced in late June and was completed on 7 July 2007. A 5km subsea production pipeline from the HI-268A platform to a regional processing facility was laid by the operator during July 2007.

The High Island A-2 well was successfully drilled and completed in late July 2007. Following the completion of flow testing and pressure build-up activities, the well was placed on production on 15 September 2007. The well was completed over a shallower and deeper horizon. The well is currently only producing from the lower reservoir sands. Once the pressure in these deeper sands naturally depletes through production, the sliding sleeve over the upper sands will be opened and the well flowed from the upper sands. Following the drilling and completion of Well A-2, the rig re-entered Well A-1 and completed it for production over the deeper reservoir. Upon completion of testing activities, Well A-1 was placed on production on 7 September 2007.

The prospect of a third development well at High Island will be considered by the joint venture following an analysis of data generated from the recent drilling campaign and production results. Elixir holds a 30% working interest in the High Island Project. Federal and other royalties on production equate to 25% giving a net revenue interest to Elixir of 22.5%. Elixir’s 22.5% net revenue interest will be reduced to 19.6% pursuant to a ‘back-in’ arrangement once Elixir has recouped its initial investment in the project.

Pompano, Gulf of Mexico USA

Elixir (through its wholly-owned US subsidiary) has acquired a 25% working interest in the Pompano gas field development and exploration project located in Brazos Block 446-L SE/4, which is 7 miles offshore the Texas Gulf Coast. The lease holder and operator of the project is a private US company.

The Pompano Project is located in 60 feet of water and has existing production infrastructure, including a platform and two satellite caissons tied back to the platform. The field has pipeline access to intrastate gas markets. Access to this infrastructure will significantly reduce project capital costs and the time required to first production.

The Pompano field ceased production in 1995 after producing 120 billion cubic feet of gas from Miocene reservoirs in a faulted structural high. The high trend has produced more than 800 BCF of gas from several fields. Similarly to High Island, the field was discovered, explored and, in the case of Pompano, developed with wells based only on 2D seismic data.

At Pompano, a new 3D seismic interpretation generated in 2005 by the Operator clarified the field structure and has located undrained reservoir sands up-dip of previously producing wells. The seismic interpretation also identified undrilled fault block compartments which were not apparent on the previous 2D seismic interpretation. This has resulted in the defining of substantial Proved and Probable reserves together with the identification of significant exploration potential.

The development programme presented by the operator identified six possible well locations targeting a number of different reservoir horizons. The first two wells in the proposed programme were drilled during 1H 2008. Each of these wells encountered commercial hydrocarbons in several horizons. The wells were completed as producers and tied in to the existing production facilities in the field. Well ATO #1 was placed on production in March 2008 and well ATO #2 in May 2008. A third new well in the Pompano field, ATO#3, was drilled in September 2008. Results from ATO#3 were inconclusive, so the well has been suspended as a possible future sidetrack candidate.

In 2009 the Pompano joint venture participants were awarded a further lease adjoining the southern portion of the Pompano field. The lease contains the Redfish exploration prospect which is being worked up by the operator.

Block 211/12b, Northern UK

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, Northern UK

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.

Moselle Permit, France

In April 2010, Elixir completed the acquisition of the large Moselle Permit located in the East Paris Basin, onshore North-eastern France. The Permit is prospective for a number of different play types including conventional gas, unconventional gas (i.e. tight sand and shale gas) and coal bed methane (“CBM”).

The Moselle Permit is 5,360 km2 in area (or approximately 1.32 million acres), making it the largest single exploration block onshore France (see map below). The Permit was awarded in January 2009 to East Paris Petroleum Development Limited (“EPPDL”) for an initial five year term. EPPDL is required to spend €3 million on exploration activities within the Permit during the initial term, of which a proportion has already been expended by EPPDL during 2009. There is no obligation to drill any wells during the initial term.

Elixir has acquired the entire issued share capital of EPPDL, the 100% interest holder and operator of the Moselle Permit. It is Elixir’s intention to apply its experience in the identification, evaluation and presentation of new exploration opportunities for farmout, particularly for exploration and appraisal drilling, to the exciting potential of the Moselle Block.

Mine For

oil, gas

Location of operation(s)

Mexico, United Kingdom, France

Address

Level 3, 89 St Georges Terrace
PERTH, 6000, WA, AUSTRALIA

Phone

+61 8 94402650

Email

Website


Last Updated

11/04/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.