ELP Elixir Pet.

    RNS Number : 1161Y
  Elixir Petroleum Ltd
  02 July 2008
   

    Elixir Petroleum Limited
    (AIM : ELP)

    2 July 2008

    RESULTS OF ENTITLEMENT ISSUE

    Elixir Petroleum Limited ("Elixir" or the "Company"), the international exploration and production company (ASX:EXR, AIM:ELP) advises
that acceptances under the Company's 1 for 8 entitlement offer ("Rights Issue"), as first announced to the market on 29 May 2008, closed at
5pm (WST) on 27 June 2008.
    Valid acceptances for 1,950,550 shares were received, which represented a take-up of approximately 9.7%, raising new funds of
AUD$526,649 for the Company.  The offer was only made to Australia and New Zealand resident shareholders of Elixir.
    As previously disclosed by the Company, an agreement pursuant to which the Rights Issue was fully underwritten ("Agreement") included
various clauses which, if triggered, enabled the underwriter of the Rights Issue to terminate the Agreement at their option without cost to
the Company. One of these clauses related to movements in the ASX Small Ordinaries Index, which has fallen by more than the trigger of 10%
since the date of the Agreement. As a result, the underwriter has today delivered to the Company written notice of the termination of the
underwriting arrangements with respect to the Rights Issue.
    As stated in the Rights Issue Offer Document, the Directors reserve the right under these circumstances to place any shortfall at their
discretion and have successfully placed approximately 5.9 million shares at $0.27 per share to professional and sophisticated investors
("Shortfall Shares"), all of whom were sub-underwriters to the Rights Issue, raising a further $1.6 million (gross of expenses) for the
Company.
    Allotment of the Rights Issue shares has now occurred and Elixir expects that holding statements will be despatched to shareholders on
or before 7 July 2008. An update on the allotment process for the Shortfall Shares will be provided in due course.
    Commenting on the announcement, Elixir's Managing Director, Andrew Ross said:

    "Following the close of the Rights Issue and partial placement of the shortfall, Elixir has cash on hand of some $12 million, with
additional receipts from monthly production of a further US$1.5 million expected in July. The Company's cash reserves and its operating cash
flow place it in a strong position to drive forward its business plan and to continue to pursue opportunities within and outside its current
portfolio of interests.

    "Timing of the Rights Issue has proved problematic with turbulent international market conditions further impacted locally by year-end
tax considerations during June.

    "We would however like to thank those shareholders and new investors who supported the issue and we look forward to an exciting period
of further growth for the Company in the second half of 2008."

 For further information, please visit the Company's website at www.elixirpetroleum.com, or contact:

 Elixir Petroleum Limited                                                                Blue Oar Securities Plc
 Alex Neuling                                                                           Jerry Keen / Olly Cairns
 Tel: (+61) 8 9440 2650                                                   Tel: (+44) 207 448 4400 / (+61) 8 6430
                                                                                                            1631


 Conduit PR
 Jonathan Charles / Sarah Alexander
 Tel: (+44) 207 429 6666


This information is provided by RNS
The company news service from the London Stock Exchange
 
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