uk closed at 37.00p (aud$0.8740), page-18

re: re:hi dyno activity in uk & oslo last night

Hi Blackgold,

You were asking about the structure of Jaguar, number of targets and the drilling of Jaguar. I think the Ambrian Report addresses some of your questions. See section from the report below. Weblink: http://www.elixirpetroleum.com/display.php?action=view&type=Research%20Reports&aid=296

Cheers,

Brantley

Comments from the Ambrian Report

Comments on Jaguar:

• The prospect on 211/22b, named Jaguar, comprised of three potential horizons totalling 450m boe of potential resource. The reservoirs are thought to be in the Upper and Mid Jurassic series, at depths of between 3,500m and 3,800m.
  
  
• It is believed that the seal on the Upper Jurassic horizons is provided by shales of the Kimmeridge clay formation, encapsulating the predicted reservoir horizons, thus creating a stratigraphic trap. Seal on the Mid Jurassic Brent Formation is thought to be provided by a combination of structural features.
  
  
• Seal, hydrocarbon source and migration are not considered to be significant risks with the Jaguar prospect due to the presence of the Kimmeridge clay. The key risk, however, is associated with the presence and distribution of the reservoir. As a result Elixir has focused on derisking the prospect using advanced geophysical techniques including seismic inversion and multi-attribute analysis.
  
  
• Evidence that the uplift and erosion of the tilted fault block, a requirement for later sand deposition, has indeed occurred comes directly from well and seismic data, shown below.
  

• The employment of seismic inversion and multi-attribute analysis has increased confidence that eroded Brent sands have been re-deposited in the Upper Jurassic interval.
  
  
• Acoustic impedance analysis has indicated there are contrasting responses within the prospective interval, which suggests the presence of sand/shale boundaries. Frequency attenuation, one of the attributes extracted during the seismic inversion process has also indicated an area
  of strong acoustic attenuation, which is an indication of lower density and by inference more porous strata.
  
  
  
• While Jaguar is an untested play concept on the UK side of the median line, a similar play has been tested and successfully exploited relatively nearby on the Norwegian continental shelf. An analogous field, currently in production on the Norwegian side (Borg), has been used to help refine the geological models used to study Jaguar.
  
  
• On the strength of the technical work completed by Elixir, a Norwegian company, DNO, has farmed in to the prospect on a 1.54:1.00 basis, with the farminee paying for 92.5% of the exploration well cost. Elixir will have a working interest of 40% and will pay 7.5% of the well cost, currently estimated at $1.15m of a total well cost of $15m.
  
  
• 
  Four horizons have now been identified in the Jaguar prospect, opposed to just a single unit at the IPO. Should all the horizons prove successful, approximately 450m boe of gross 2P reserves could be realised with Elixir’s share being some 180m boe.
  
• 
  Should all the horizons be proven, Jaguar would most likely be developed through a standalone development. It is worth noting, however, that even if the size of the discovery is smaller that the 450m boe indicated by the
  seismic, production could be tied back to one of a number of platforms, namely North Cormorant (10km), and exported via the Dunlin A export line (8km); gas could be exported via North Cormorant (10km) pipeline.