The well is being drilled by the semi-submersible rig Sedco 712 and is expected to take about four weeks to reach its planned total depth.
Elixir managing director Russell Langusch said the company would participate in two exploration wells over the next four to five months.
“Although Muness is smaller than our large Jaguar prospect further north in block 211/22b, success at Muness would have a material value impact on our company," Langusch said.
"Its location close to infrastructure means that a discovery could be quickly commercialised.”
Elixir will earn a 7% working interest from the licence operator Maersk Oil North Sea UK Ltd, formerly Kerr-McGee, by contributing £1 million (A$2.35 million) of the Muness well’s drilling costs.
The company estimates P2 reserves of 350 bcf of gas and 20 million barrels of associated condensate, assuming hydrocarbons are present.
The 21/4-2 well drilled in 1984 showed the presence of good quality Kopervik sands on the block, Elixir said.
