Elixir Petroleum says gas production from Pompano in the Gulf of Mexico exceeds earlier expectations.

The Western Australia-based company, which has now received its first sale proceeds from output at Pompano, says independent consultants have established reserves of 17.1 billion cubic feet of gas and nearly 50,000 barrels of condensate for the first two Pompano wells. AIM-quoted Elixir says these wells are already producing around 16 million cubic feet of gas and 60 barrels of condensate a day.

Managing director Andrew Ross says the reserve figures for Pompano’s first two wells ‘give added confidence for future wells’. Floated at 24p in 2005, Elixir shares reached 46p in early 2006, before slumping to 8p last month.

They have rallied to 12.5p, up 2.25p this morning, where they value the company at £20.2 million. The appeal is speculative.

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