The semi-submersible rig, Bredford Dolphin, will arrive after it has finished drilling a well for Dana Petroleum in neighbouring Block 211/22a, Elixir said.

The Jaguar well will test a stratigraphic play, as yet untested in the UKCS northern North Sea, but commercially proven in nearby Norwegian waters, the company said.

Elixir's farm-in partner and operator, DNO UK LTD, will drill the well to test a gross potential 450 million barrels of oil. Drilling expected to take 45 days to reach a total depth of about 3,950 metres.

Elixir managing director Russell Langusch said securing the rig shortly after the company’s October farm-in to Muness was “great news.”

“The company believes that very few other junior oil and gas explorers, if any, will be participating in such a high potential exploration well as Jaguar over the next few months,” Langusch said.

“Our strategy of participating in a number of potential company-making North Sea exploration wells is gaining momentum with Muness planned to be spudded later this month and Jaguar now in mid January 2006.”

The Muness well and block 21/4b was Elixir’s first farmin. The company will earn a 7% working interest by funding £1 million (A$2.35 million) of the drilling costs. Operated by Kerr-McGee, the Muness well will be Elixir's second North Sea exploration well.

Elixir holds a 40% interest in Block 211/22b, while DNO, which has the remaining 60%, will meet 92.5% of the Jaguar well costs, under the farmin agreement terms signed in June this year.

DNO is an active explorer and owns producing assets in the Norwegian sector of the North Sea.