Gawler acquires interest in Pompano, plans redevelopment

Gawler has acquired a 25% working interest in the Pompano gas field in Brazos Block 446L SE/4 in the Gulf of Mexico.

Offshore staff

US, GoM -- Gawler has acquired a 25% working interest in the Pompano gas field in Brazos Block 446L SE/4 in the Gulf of Mexico. The lease holder and operator of the field is AnaTexas Offshore Inc.

This acquisition is in line with Gawler's GoM production-development strategy, which began in December 2006 with the High Island gas field development, according to the company's proposed merger partner Elixir Petroleum Ltd. High Island is expected to start production in the fourth quarter of this year.

The Pompano field ceased production in 1995. It had produced 120 bcf of gas from Miocene reservoirs, which have produced more than 800 bcf of gas from several fields.

Pompano was developed with wells based on 2D seismic. New 3D seismic obtained by the operator in 2005 clarified the structure and located undrained reservoir up-dip of the producing wells and undrilled fault compartments that were not apparent on the 2D seismic, Elixir says.

From this, according to Elixir, a phased development plan has been arranged. Phase 1 calls for drilling of six wells targeting proved undeveloped reserves of 24 bcf, probable reserves of 40 bcf, and estimated recoverable reserves of 104 bcf. The first well is expected to spud by the end of this year.

Brazos Block 446L SE/4 is located 7 mi (11 km) offshore in 60 ft (18 m) of water. Existing infrastructure includes a platform, two satellite caissons, and an export pipeline. The first two wells, if successful, will be connected to the existing facilities.

Gawler also has entered into an agreement with Buccaneer Resources Inc for ongoing collaboration on project management, new project identification, and local office facilities in Houston, Elixir says.

"The numerous lower risk development and appraisal opportunities in the Gulf, together with Elixir's high impact North Sea exploration activities represent the foundations for a balanced upstream oil and gas company as proposed by the merger of the two companies," says Russell Langusch, Elixir's managing director.

6/19/2007

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