EnCore Oil ..

HIS REPLY:

Dear Mr ,,,,,



Thank you for your email expressing some concerns about the timing of the Guinea well.



First may I note that the value of Guinea to Elixir does not change at all, whether the well is drilled in November or early in 2007.

The well was initially programmed to be spudded in mid-November but has slipped for a variety of reasons, all of which have been beyond the control of either ourselves or the rig operator, Nexen.



The primary cause of the slippage has been the bad weather which of course we cannot predict.

Weather downtime is not unusual in the North Sea in winter time. But that being said, we drilled a 45 day well last winter with almost no downtime. In other words there is no way of predicting such delays.

We are not alone in experiencing such problems this year. Virtually all drilling operations have been affected, some much worse than our rig.



The risk of weather delays is a fact of life in the hostile North Sea that the board and most of our investors accept. It is a risk that we fully understand and accept as a consequence of operating in this area. We do not intend to change our sphere of operations nor our reporting methods for the present.



We have been issuing regular market releases in the interests of keeping our shareholders fully informed of the latest status of the Guinea well. In addition such regular disclosure is required by stock exchange regulations where the exchange demands that the market remains fully informed at all times.



I am sure that you like us are hoping for a positive result when Guinea eventually gets underway.



Kind regards,



Russell Langusch

Elixir Petroleum Ltd

rlangusch@elixirpetroleum.com

+44 207 484 5623 (UK office)

+44 207 484 4992 (UK fax)

+44 7840 523 771 (UK cell)

+61 411 725 858 (Aust cell)



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